Form 4797 Test Problem:

Lavender Manufacturing, LLC has decided to upgrade it's equipment for the newest technology. The old equipment is in very good condition. By using a broker, they were able to get a good price for some of the old equipment. Data on this equipment disposition are as follows:

Asset Cost Date Acqu'rd Accum Dep Sales price Date sold

Grinders $1,500,000 12/11/16 $500,000 $900,000 05/01/20

Planters $ 400,000 03/17/17 $250,000 $ 75,000 04/25/20

Welders $2,000,000 07/21/19 $2,000,000 $1,500,000 09/01/20

The company used the 100% bonus depreciation in 2019 for the welders. This DOES NOT change anything on the Form 4797!