Aqua Corporation purchases nonresidential real property on May 8, 2019, for $1,000,000. Straight-line cost recovery is taken

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Aqua Corporation purchases nonresidential real property on May 8, 2019, for $1,000,000. Straight-line cost recovery is taken in the amount of $89,765 before the property is sold on November 27, 2022, for $1,500,000.

a. Compute the amount of Aqua’s recognized gain on the sale of the realty.

b. Determine the amount of the recognized gain that is treated as § 1231 gain and the amount that is treated as § 1250 recapture (ordinary income).

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South Western Federal Taxation 2023 Comprehensive Volume

ISBN: 9780357719688

46th Edition

Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young

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Question Posted: Sep 24, 2023 04:06 AM

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Aqua Corporation purchases nonresidential real property on May 8, 2019, for $1,000,000. Straight-line cost recovery is taken

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a 589765 The gain is computed as follows 1500000 amount realized 910235 adjusted ...View the full answer

South Western Federal Taxation 2023 Comprehensive Volume

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