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William sold Section 1245 property for $25,000 in 2020. The property cost $40,000 when it was purchased 5 years ago.

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William sold Section 1245 property for $25,000 in 2020. The property cost $40,000 when it was purchased 5 years ago. The depreciation claimed on the property was $21,000.
a. Calculate the adjusted basis of the property. $_____________
b. Calculate the realized gain on the sale. $_____________
c. Calculate the amount of ordinary income under Section 1245.$_____________
d. Calculate the Section 1231 gain. $_____________

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a 19 000 40 000 21 000 b 6 000 25 000 19 00…View the full answer


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Related Book For  answer-question
Income Tax Fundamentals 2021

Income Tax Fundamentals 2021

ISBN: 9780357141366

39th Edition

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

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Question Details
Chapter # 8- Depreciation and Sale of Business Property
Section: Problem
Problem: 18
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Question Posted: September 28, 2023 03:05:14
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