Hank owns a fitness center called Peak Performance Gym. During the past year, Hank sold his facility to buy a larger building with a parking area. He received sales proceeds of $150,000 from the buyer. He paid a sales commission of $8,000 to his broker. The building had an original cost of $120,000 and had accumulated depreciation for tax purposes of $18,500. What is Hank 's realized gain or loss on the sale?
Hank owns a fitness center called Peak Performance Gym. During the past year, Hank sold his facility to buy a larger building with a parking area. He received sales proceeds of $150,000 from the buyer. He paid a sales commission of $8,000 to his broker. The building had an original cost of $120,000 and had accumulated depreciation for tax purposes of $18,500. What is Hank 's realized gain or loss on the sale?
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 52P
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What is the realized gain or loss on the slae on these financial accounting question?
Transcribed Image Text:Hank owns a fitness center called Peak Performance Gym. During
the past year, Hank sold his facility to buy a larger building with a
parking area. He received sales proceeds of $150,000 from the
buyer. He paid a sales commission of $8,000 to his broker. The
building had an original cost of $120,000 and had accumulated
depreciation for tax purposes of $18,500.
What is Hank 's realized gain or loss on the sale?
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