Copper Industries (a sole proprietorship) sold three 1231 assets during 2022. Data on these property...

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Copper Industries (a sole proprietorship) sold three § 1231 assets during 2022. Data on these property dispositions are as follows: Asset Rack Forklift Bin Accumulated Cost Acquired Depreciation Sold For Sold On $110,000 10/10/19 45,000 10/16/19 97,000 03/12/21 If an amount is zero, enter "0". $70,000 21,000 31,000 $55,000 10/10/22 15,000 10/10/22 60,000 10/10/22 a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. Amount of § 1245 Recapture Asset Rack Forklift Bin Copper has $ loss Character of Gain or Loss Ordinary income § 1231 loss §1231 loss ✓ Total Amount of Gain or Loss 15,000 ✓ -9,000 -6,000 15,000 ✓of ordinary income ✓ ✓ 15,000 ✓ 0 ✓ 0 ✓ Balance of Gain or Loss 0 9,000 6,000 ✓due to § 1245 recapture and $ 15,000 ✓ of § 1231 b. Assuming that Copper has $6,000 nonrecaptured net § 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain. 15,000 X Copper Industries (a sole proprietorship) sold three § 1231 assets during 2022. Data on these property dispositions are as follows: Asset Rack Forklift Bin Accumulated Cost Acquired Depreciation Sold For Sold On $110,000 10/10/19 45,000 10/16/19 97,000 03/12/21 If an amount is zero, enter "0". $70,000 21,000 31,000 $55,000 10/10/22 15,000 10/10/22 60,000 10/10/22 a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. Amount of § 1245 Recapture Asset Rack Forklift Bin Copper has $ loss Character of Gain or Loss Ordinary income § 1231 loss §1231 loss ✓ Total Amount of Gain or Loss 15,000 ✓ -9,000 -6,000 15,000 ✓of ordinary income ✓ ✓ 15,000 ✓ 0 ✓ 0 ✓ Balance of Gain or Loss 0 9,000 6,000 ✓due to § 1245 recapture and $ 15,000 ✓ of § 1231 b. Assuming that Copper has $6,000 nonrecaptured net § 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain. 15,000 X

Answer rating: 100% (QA)

a The amount and the character of the gain or loss recognized from the disposition of each asset ... View the full answer