Siena Industries (a sole proprietorship) sold three ? 1231 assets during 2018. Data on these property dispositions are as follows:

a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset.b. Assuming that Siena has no non-recaptured net ? 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain.

Transcribed Image Text:

Acquired Sold for Depreciation Asset Cost Sold on 10/10/14 10/16/15 03/12/17 Rack 10/10/18 $62,000 $85,000 5,000 $100,000 Forklift 35,000 87,000 23,000 10/10/18 Bin 34,000 10/10/18 60,000