William sold Section 1245 property for $25,000 in 2014. The property cost $35,000 when it was purchased

Question:

William sold Section 1245 property for $25,000 in 2014. The property cost $35,000 when it was purchased 5 years ago. The depreciation claimed on the property was $16,000.
a. Calculate the adjusted basis of the property. $ ______________
b. Calculate the recomputed basis of the property. $ ______________
c. Calculate the amount of ordinary income under $ ______________
Section 1245.
d. Calculate the Section 1231 gain. $ ______________
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Income Tax Fundamentals 2015

ISBN: 9781305177772

33rd Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill

Question Posted: