Hank owns a gym called Ultimate Fitness. During the past year, Hank sold his facility to purchase a larger building with a parking lot. He received sales proceeds of $125,000 form the buyer. He paid a sales commission to his broker of $6,500. The building had an original cost of $105,00 and had accumulated depreciation for tax purposes of $15,825. What is Hank's realized gain or loss on the sale?
Hank owns a gym called Ultimate Fitness. During the past year, Hank sold his facility to purchase a larger building with a parking lot. He received sales proceeds of $125,000 form the buyer. He paid a sales commission to his broker of $6,500. The building had an original cost of $105,00 and had accumulated depreciation for tax purposes of $15,825. What is Hank's realized gain or loss on the sale?
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 32P
Related questions
Question
100%
Need answer the general accounting question Don't use
Transcribed Image Text:Hank owns a gym called Ultimate Fitness. During the past
year, Hank sold his facility to purchase a larger building
with a parking lot. He received sales proceeds of $125,000
form the buyer. He paid a sales commission to his broker
of $6,500. The building had an original cost of $105,00 and
had accumulated depreciation for tax purposes of
$15,825. What is Hank's realized gain or loss on the sale?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT