Required information

Problem $11-45($LO $11-3,$ LO $11-4,$ LO $11-5)($Static$)$

Skip to question

$[$The following information applies to the questions displayed below.$]$

Hart, an individual, bought an asset for $$500,000$ and has claimed $$100,000$ of depreciation deductions against the asset. Hart has a marginal tax rate of $32$ percent.

Answer the questions presented in the following alternative scenarios $($assume Hart had no property transactions other than those described in the problem$)$:

Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answers blank. Enter zero if applicable.

Problem $11-45$ Part$-$e $($Static$)$

Required:

e$1.$ Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a nonresidential building sold for $$450,000?$

e$2.$ What effect does the sale have on Hart's tax liability for the year $($assume a $21$ percent tax rate$)?$