William sold Section 1245 property for $25,000 in 2018. The property cost $37,000 when it was purchased

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William sold Section 1245 property for $25,000 in 2018. 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 2019

ISBN: 9781337703062

37th Edition

Authors: Gerald E. Whittenburg, Steven Gill

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Question Posted: Mar 02, 2019 06:41 AM

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William sold Section 1245 property for $25,000 in 2018. The property cost $37,000 when it was purchased

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a 37000 17000 20000 b 20000 17000 37000 The recomputed basis is equal to the adjus...View the full answer

Income Tax Fundamentals 2019

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