Problem 8-6 (Algorithmic) Calculation of Gain or Loss, Section 1231 Gains and Losses (LO 8.3, 8.6)

Frank Willingham has the following transactions during the year:

Sale of office equipment on March 15 that cost $67,200 when purchased on July 1, 2014. Frank has claimed $13,440 in depreciation and sells the asset for $40,320 with no selling costs.

Sale of land on April 19 for $140,200. The land cost $154,220 when purchased on February 1, 2005. Frank's selling costs are $28,040.

Assume there were no capital improvements on either business asset sold. Frank's Social Security number is 924-56-5783.

Complete Form 4797 to report the above gains or losses.

Enter all amounts as positive numbers except for a "loss". If required, enter a "loss" as a negative number on the tax form. If an amount is zero, enter "0".