Please provide the accurate answer to this general accounting problem using appropriate methods. Maria owns a restaurant called Coastal Flavors. During the past year, Mariasold her commercial kitchen equipment to upgrade to newer models. Shereceived sales proceeds of $78,000 from the buyer. She paid a salescommission to her equipment broker of $3,900. The kitchen equipment hadan original cost of $85,000 and had accumulated depreciation for tax purposesof $42,500. What is Maria's realized gain or loss on the sale?

Step 1: Definition of Realized Gain or LossA realized gain or loss on the sale of an asset is the…

Answered: Maria owns a restaurant called Coastal…

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 32P

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General Account:- 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?
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