9. In 2016, Olive’s Optometry, a sole proprietorship, purchased a piece of business-use property (Equipment A) for $1,000,000. Olive’s owned Equipment A for more than a year and depreciation deductions totaled $600,000.

Assume Olive’s sold Equipment A for $1,150,000 in 2019, and Olive’s paid $50,000 in selling expenses. What is Olive’s recognized gain on the sale of Equipment A in 2019?

10.What amount of Olive’s recognized gain is recaptured as ordinary income (1245 recapture)?

11.  What is the amount of Olive’s 1231 gain on the sale of Equipment A?

12. In 2016, Olivia’s Optometry, a sole proprietorship, purchased a piece of business-use property (Equipment A) for $1,000,000. Olivia’s owned Equipment A for more than a year and depreciation deductions totaled $600,000.In 2019, Olivia’s sold Equipment A for $200,000, and Olivia’s paid no selling expenses. What amount of Olivia's recognized gain or loss is recaptured as ordinary income under section 1245?

Answer rating: 100% (QA)

To calculate Olives recognized gain on the sale of Equipment A in 2019 follow these steps 1 Calculat... View the full answer