Need answer the general accounting question Don't use Ai Hank owns a gym called Ultimate Fitness. During the pastyear, Hank sold his facility to purchase a larger buildingwith a parking lot. He received sales proceeds of $125,000form the buyer. He paid a sales commission to his brokerof $6,500. The building had an original cost of $105,00 andhad accumulated depreciation for tax purposes of$15,825. What is Hank's realized gain or loss on the sale?

Step 1: Define Realized GainA realized gain is an amount recognized on a transaction when the sales…

Answered: Hank owns a gym called Ultimate…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 52P

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