Problem $8-41($LO$.6,7)$

Javier is the sole proprietor of a sporting goods business. During $2023,$ the following transactions occurred. For each transaction, what are the amount and nature of recognized gain or loss?

If an amount is zero, enter $"0".$

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a$.$ Unimproved land adjacent to Javier$$s store was condemned by the city on February $1.$ The condemnation proceeds were $$15,000.$ The land, acquired in $1990,$ had a basis of $$40,000.$ Javier has additional parking across the street and plans to use the condemnation proceeds to build his inventory.

There is a

of $fill in the blank $5$a$64$a$1040$fa$805$b$\_2$ that is treated as

$.$

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b$.$ A delivery truck used in Javier$$s business was sold on January $2,2023$ for $$3,500.$ The truck was purchased on January $2,2019,$ for $$6,000.$ On the date of sale, the adjusted basis was zero.

There is a

of $fill in the blank $748$d$8$d$037058065\_2$ that is treated as

$.$

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c$.$ Javier sold a rowing machine at an auction. Net proceeds were $$4,900.$ The rowing machine was purchased as used equipment $17$ years ago for $$5,200$ and is fully depreciated.

There is a

of $fill in the blank $7$e$7$e$8$c$031031018\_2$ that is treated as

$.$

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d$.$ Javier sold an apartment building for $$300,000$ on September $1.$ The property was purchased on September $1,2020,$ for $$150,000$ and was being depreciated over a $27\mathrm{.}5-$year MACRS life using the straight$-$line method. At the date of sale, the adjusted basis was $$124,783.$ Javier actively managed the property as a trade or business.

There is an overall

of $fill in the blank $803$d$32037$fbffef$\_2.$

How much $1250$ recapture is recognized? $fill in the blank $803$d$32037$fbffef$\_3$

What is the amount of unrecaptured $1250?$ $fill in the blank $803$d$32037$fbffef$\_4$

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e$.$ Javier's personal yacht was stolen on September $5.$ The yacht had been purchased in August at a cost of $$25,000.$ The fair market value immediately preceding the theft was $$19,600.$ Javier was insured for $50\%$ of the original cost, and he received $$12,500$ on December $1.$

There is a tax

$($before any AGI limitations$)$ of $fill in the blank bcb$5$ed$06005807$c$\_2$ that is treated as

$.$

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f$.$ Javier sold a Buick on May $1$ for $$9,600.$ The vehicle had been used exclusively for personal purposes. It was purchased on September $1,2019,$ for $$20,800.$

There is a

of $fill in the blank $66$d$1$ef$01$afdaf$95\_2$ that is treated as

$.$

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g$.$ A trampoline stretching machine $($owned two years and used in Javier$$s business$)$ was stolen on May $5,$ but the business's insurance company will not pay any of the machine's value because Javier failed to pay the insurance premium. The machine had a fair market value of $$8,000$ and an adjusted basis of $$6,000$ at the time of theft.

There is a tax

of $fill in the blank b$006$e$10$cd$01604$e$\_2$ that is treated as

$.$

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h$.$ Assume Javier had AGI of $$102,000$ from sources other than those described above. He also has no nonrecaptured $1231$ lookback losses.

What is Javier's $2023$ AGI?

Javier's $2023$ AGI is $fill in the blank $88984$bf$8$f$004030\_1.$