A taxpayer acquired Section 1245 property at a cost of $12,000. The asset was sold 10...

 

Transcribed Image Text:

A taxpayer acquired Section 1245 property at a cost of $12,000. The asset was sold 10 years later for $6,000, and depreciation claimed on the asset was $7,000. Calculate the following amounts: 1. Adjusted basis 2. Recomputed basis %$. 3. Recomputed basis less the adjusted basis 4. Amount realized less adjusted basis (gain realized) 5. Ordinary income under Section 1245 6. Section 1231 gain $. %24 %24 A taxpayer acquired Section 1245 property at a cost of $12,000. The asset was sold 10 years later for $6,000, and depreciation claimed on the asset was $7,000. Calculate the following amounts: 1. Adjusted basis 2. Recomputed basis %$. 3. Recomputed basis less the adjusted basis 4. Amount realized less adjusted basis (gain realized) 5. Ordinary income under Section 1245 6. Section 1231 gain $. %24 %24

Answer rating: 100% (QA)

1 To calculate the amount of Adjusted basis Cost Depreciation 12000 7... View the full answer