Question: How do I put this on a book-tax reconciliation template? Income statement: Gain from disposition of fixed asset $2,000 Facts: They sold equpment for $10,000.
How do I put this on a book-tax reconciliation template?
Income statement:
Gain from disposition of fixed asset $2,000
Facts: They sold equpment for $10,000. It originally purchased the equipment for $12,000 and, through the date of the sale, had recorded a cumulative total of $4,000 of book depreciation on the asset and a cumulative total of $6,000 of tax depreciation. For tax purposes, the entire gain was recaptured as ordinary income under section 1245.
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