1. Abe has a business that he began in 2013. During 2022 the business has the...

   

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1. Abe has a business that he began in 2013. During 2022 the business has the following events: a. 9,500 of insurance proceeds more than basis due to the destruction of a machine b. Total loss of a business asset with a fair market value of $3,000 and a basis of $15,000 c. Sale of depreciable assets held for more than one year: a. Asset A gain of $23,000-depreciation deductions en were $4,500 b. Asset B loss of $7,000- depreciation deductions taken were $5,000 c. Asset C loss of $6,000- depreciation deductions taken were $4,000 d. Sale of depreciable assets held for less than one year: a. Asset D gain of $2,400-depreciation deductions taken were $1.000 What is the tax treatment of the above transactions? Would your answer change if Abe had the following Sec. 1231 amounts? If so, what would it change to? a. 2017 - loss of $2,500 b. 2018- gain of $2,000 c. 2019- loss of $1,200 d. 2020-gain of $4,400 e. 2021-loss of $3,000 1. Abe has a business that he began in 2013. During 2022 the business has the following events: a. 9,500 of insurance proceeds more than basis due to the destruction of a machine b. Total loss of a business asset with a fair market value of $3,000 and a basis of $15,000 c. Sale of depreciable assets held for more than one year: a. Asset A gain of $23,000-depreciation deductions en were $4,500 b. Asset B loss of $7,000- depreciation deductions taken were $5,000 c. Asset C loss of $6,000- depreciation deductions taken were $4,000 d. Sale of depreciable assets held for less than one year: a. Asset D gain of $2,400-depreciation deductions taken were $1.000 What is the tax treatment of the above transactions? Would your answer change if Abe had the following Sec. 1231 amounts? If so, what would it change to? a. 2017 - loss of $2,500 b. 2018- gain of $2,000 c. 2019- loss of $1,200 d. 2020-gain of $4,400 e. 2021-loss of $3,000

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Answers and Explanation a The excess insurance proceeds of 9500 are included in gross income and are ... View the full answer