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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Problem 14-72 (LO. 7, 8, 9)
Siena Industries (a sole proprietorship) sold three § 1231 assets during 2023. Data on these property dispositions are as follows:
Accumulated
Cost Acquired Depreciation Sold For Sold On
Rack $100,000 10/10/19 $62,000 $86,000 10/10/23
Forklift
35,000 10/16/20
23,000
4,000 10/10/23
Bin
87,000
03/12/22
34,000
60,000 10/10/23
Asset
If an amount is zero, enter "0".
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
Feedback
►Check My Work
Character of
Gain or Loss
Ordinary income
§ 1231 loss
Ordinary income
X of ordinary income
7,000
X
X
due to § 1245 recapture and
X
0 ✓
7,000
Balance of
Gain or Loss
0
0
X of § 1231
X
b. Assuming that Siena has no nonrecaptured 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.
0 ✓](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bdf6da1-3993-4dde-8714-3ad6f4c9d57b%2F9f62ebb9-e7d7-4872-b8b4-91a0b0a9747d%2Fbpwing8_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 14-72 (LO. 7, 8, 9)
Siena Industries (a sole proprietorship) sold three § 1231 assets during 2023. Data on these property dispositions are as follows:
Accumulated
Cost Acquired Depreciation Sold For Sold On
Rack $100,000 10/10/19 $62,000 $86,000 10/10/23
Forklift
35,000 10/16/20
23,000
4,000 10/10/23
Bin
87,000
03/12/22
34,000
60,000 10/10/23
Asset
If an amount is zero, enter "0".
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
Feedback
►Check My Work
Character of
Gain or Loss
Ordinary income
§ 1231 loss
Ordinary income
X of ordinary income
7,000
X
X
due to § 1245 recapture and
X
0 ✓
7,000
Balance of
Gain or Loss
0
0
X of § 1231
X
b. Assuming that Siena has no nonrecaptured 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.
0 ✓
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