Copper Industries (a sole proprietorship) sold three § 1231 assets during 2018. Data on these property dispositions are as follows:

a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset.
b. Assuming that Copper has $6,000 nonrecaptured net § 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain.

Transcribed Image Text:

Cost Acquired Depreciation Sold for Asset Sold on Rack $110,000 $70,000 $55,000 10/10/15 10/10/18 Forklift 45,000 10/16/14 21,000 15,000 10/10/18 03/12/17 60,000 Bin 97,000 31,000 10/10/18