a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. Total Amount of Amount of § 1245 Recapture Gain or Loss Asset Rack Forklift Bin Siena has $ loss Character of Gain or Loss Ordinary income § 1231 loss Ordinary income X of ordinary income 7,000 X X ✓ due to § 1245 recapture and 7,000 X Balance of Gain or Loss 0 ✓ 0 X of § 1231 X

a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. Total Amount of Amount of § 1245 Recapture Gain or Loss Asset Rack Forklift Bin Siena has $ loss Character of Gain or Loss Ordinary income § 1231 loss Ordinary income X of ordinary income 7,000 X X ✓ due to § 1245 recapture and 7,000 X Balance of Gain or Loss 0 ✓ 0 X of § 1231 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A fixed asset with a cost of $27,381 and accumulated depreciation of $24,642.90 is sold for $4,654.77. What is the amount of the gain or loss on disposal of the fixed asset? a.$1,916.67 loss b.$2,738.10 gain c.$1,916.67 gain d.$2,738.10 loss
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_______ 9. Which of the following constitute property for purposes of §351 Money Debt of Transferee evidenced by a security Debt of Transferee NOT evidenced by a security Interest accrued on b & c after the Transferor acquired the debt Only A Only A & B Only A, B, & d All of the above
E4
A fixed asset with a cost of $30,192 and accumulated depreciation of $27,172.80 is sold for $5,132.64. What is the amount of the gain or loss on disposal of the fixed asset? a.$2,113.44 loss b.$3,019.20 gain c.$3,019.20 loss d.$2,113.44 gain
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None
§1231 Netting Process :§1231 gain §1231 loss Net §1231 gain Nonrecaptured §1231 losses Net §1231 gain Ordinary Income: §1245 recapture §291 recapture Ordinary income Ordinary loss Ordinary income from §1231 netting TotalCapital Gains and Losses: Capital gainCapital loss Net capital gain