Firm OCS sold business equipment with a $23,000 initial cost basis and $10,015 accumulated tax depreciation. In each of the following cases, compute OCS’s recaptured ordinary income and Section 1231 gain or loss on the sale. Required: a. Amount realized was $10,600. b. Amount realized was $13,600. c. Amount realized was $18,100. d. Amount realized was $26,100
Firm OCS sold business equipment with a $23,000 initial cost basis and $10,015 accumulated tax depreciation. In each of the following cases, compute OCS’s recaptured ordinary income and Section 1231 gain or loss on the sale. Required: a. Amount realized was $10,600. b. Amount realized was $13,600. c. Amount realized was $18,100. d. Amount realized was $26,100
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 77DC
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Firm OCS sold business equipment with a $23,000 initial cost basis and $10,015
accumulated tax
recaptured ordinary income and Section 1231 gain or loss on the sale.
Required:
a. Amount realized was $10,600.
b. Amount realized was $13,600.
c. Amount realized was $18,100.
d. Amount realized was $26,100
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Calculation of recaptured ordinary income and Section 1231 gain or loss on the sale are as follows
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