William sold Section 1245 property for $25,000 in 2015. The property cost $37,000 when it was purchased

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William sold Section 1245 property for $25,000 in 2015. The property cost $37,000 when it was purchased 5 years ago. The depreciation claimed on the property was $17,000.
a. Calculate the adjusted basis of the property. $__________
b. Calculate the recomputed basis of the property. $__________
c. Calculate the amount of ordinary income under Section 1245. $__________
d. Calculate the Section 1231 gain. $__________
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Income Tax Fundamentals 2016

ISBN: 9781337343527

34th Edition

Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus Buller

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