ACTG 068A Homework Assignment # 3 REQUIRED: Prepare 2016 Form 4797 for ABC, Inc. from the following information: ABC, Inc. FEIN 94-998877345 is in construction business. ABC had the following transactions in 2018: Sales of Business Property 1 Personal Property Date Depreciation/ Holding Depreciation Item Sale Sales Placed Purchase Amortization Period Gain LT recapture LT ST LT or - ordinary (line Capital afer Sold Date Price In Service Price Taken ST) (Loss) Capital 31) Recapture Ordinary (1) (2) (3) (1) - [ (2)-(3)] (4) (5) (4) - (5) A. Truck 10/1/2018 5,000 2/1/2016 18.000 18,000 B. Furniture 7/5/2018 5 900 2/1/2018 5 1 400 5 C. "SuperCement"TM Formula 6/15/2018 $ 10,000 3/2/1998 5 1:000 $ 1,000 D. Mixing Machine (see note) 5/5/2018 5 500 1/1/2016 5 3.500 5 1231 5 year look back recapture (line 8 & 12) line 9 line 18b check - (A) 3b = (A) 2 Assume ABC, Inc. had $3,000 of net unrecaptured Sec. 1231 losses in excess of Sec. 1231 gains for 5 prior years Note: Because of clerical error no depreciation was taken on Mixing Machine a 3 year MACRS property placed in service on 1/1/2016 No property was placed in service in the 4th Quarter of 2018. Hint: Depreciation "allowed or allowable" concept is tested here