Yale Corporation purchased residential real estate several year ago for $330,000, of which $60,000 was allocated to the land and$270,000 was allocated to the building. Yale took straight-line MACRS deductions of $50,000 during the years it held the property. In the current year, Yale sells the property for $400,000, of which $70,000 is allocated to the land and 330,000 is allocated to the building. Requirement

What are the amount and character of Yale's recognized gain or loss on the sale?

Begin by computing the gain or loss on sale. Select the formula and then enter the amounts and compute the gain or loss on the sale for the land, building and for the total.

	Land	Building	Total
Amount of Gain
Sales Price
Minus: Adjusted Balance
Recognized gain or loss

Next, determine the character of the gain or loss on sale of the land and building.

	Land	Building	Total
Character of Gain:
Ordinary Income (loss)
Sec 1231 gain/loss
Recognized gain or loss