William sold Section 1245 property for $25,000 in 2016. The property cost $37,000 when it was purchased
Question:
William sold Section 1245 property for $25,000 in 2016. The property cost $37,000 when it was purchased 5 years ago. The depreciation claimed on the property was $17,000.
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.
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a 20000 37000 17000 b 37000 20000 17000 The recomputed basis is equal to the adjuste...View the full answer
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Related Book For 
Income Tax Fundamentals 2017
ISBN: 9781305872738
35th Edition
Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus Buller
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