Firm OCS sold business equipment with a $20,000 initial cost basis and $7,315 accumulated tax depreciation. In

Question:

Firm OCS sold business equipment with a $20,000 initial cost basis and $7,315 accumulated tax depreciation. In each of the following cases, compute OCS’s recaptured ordinary income and Section 1231 gain or loss on sale.
a. Amount realized was $10,000.
b. Amount realized was $13,000.
c. Amount realized was $17,500.
d. Amount realized was $22,500.