The chart below describes the assets sold by Enterprise, Inc. this year. All assets were held longer
Question:
The chart below describes the assets sold by Enterprise, Inc. this year. All assets were held longer than one year.
Asset | Cost | Depreciation | Sale Price | ||||||||
Building (used in the business) | 530,000 | 300,000 | 700,000 | ||||||||
Investment land | 250,000 | none | 625,000 | ||||||||
Overhead crane | 68,000 | 34,000 | 48,000 | ||||||||
Inventory for resale | 65,000 | None | 80,000 | ||||||||
Fill in the chart below by computing the gain(loss) from each asset disposition, determine the initial character (Ordinary, Capital, or Section 1231) of the gain(loss) without proceeding through IMA’s gain(loss) netting process, and then determine the recapture amount if the initial character is Section 1231 (write ‘N/A’ if the asset is not a 1231 asset). Write numbers with commas, but not dollar signs, like so: 100,000. Make sure you spell 'Ordinary', 'Capital', and/or 'Section 1231' correctly.
Asset | Gain/Loss | Initial character | Recapture Amount | |||||||
Rental apartment building |
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson