LO.1 Heron Company purchases commercial realty on November 13, 2005, for $650,000. Straight-line depreciation of $287,492 is claimed before the property is sold on February 22, 2023, for $850,000. What are the tax consequences of the sale of realty if Heron is: a. AC corporation? b. A sole proprietorship?

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 30CE
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LO.1 Heron Company purchases commercial realty on November 13, 2005, for $650,000. Straight-line depreciation of $287,492 is claimed
before the property is sold on February 22, 2023, for $850,000. What are the tax consequences of the sale of realty if Heron is:
a.
AC corporation?
b.
A sole proprietorship?
Transcribed Image Text:LO.1 Heron Company purchases commercial realty on November 13, 2005, for $650,000. Straight-line depreciation of $287,492 is claimed before the property is sold on February 22, 2023, for $850,000. What are the tax consequences of the sale of realty if Heron is: a. AC corporation? b. A sole proprietorship?
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