Comprehensive Problem 11-69 (LO 11-1, LO 11-2, LO 11-3, LO 11-4, LO 11-5, LO 11-6)

Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,000 and it has claimed $23,000 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.)

Required:

1. Complete this question by entering your answers in the tabs below.

2. Req a
3. Req b
4. Req c

Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirths recognized gain or loss on the sale.

Recognized Gain/(Loss)
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)
1231 gain/(loss)

b) gain realized? gain recognized? Deferred gain? Adjusted Basis in new property?

c) Amount Realized? Original Basis? Accumulated Depreciation? Gain/(Loss) Realized? Depreciation Recapture? Gain Eligible for Installment Reporting? Gross Profit Percentage? Installment Gain/(loss) in year 0; Installment gain/(loss) in year 1