Tracey White a sole proprietor owner of a dirt removal company sold three Section 1231 assets on November 30, 2020 as follows:

 

Asset	Date Purchased	Depreciation Taken	Cost	Sale Price
Rack	04/05/2010	$60,000	$100,000	$75,000
Forklift	04/06/2016	$23,000	$35,000	$5,000
Bin	7/1/2015	$34,000	$87,000	$60,000

 

1. Determine the amount and the character of the recognized gain or loss from the disposition of each asset.
2. How much of the 2020 gains are treated as long term capital gains?

Answer rating: 100% (QA)

To determine the gain or loss from the disposition of each asset and the portion treated as longterm ... View the full answer