Moran owns a building he bought during year 0 for $237,000. He sold the building in year 6. During the time he held the building he depreciated it by $33,250.   What is the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? (Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.) b. Moran received $248,000.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Moran owns a building he bought during year 0 for $237,000. He sold the building in year 6. During the time he held the building he depreciated it by $33,250.
 

What is the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? (Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.)

b. Moran received $248,000.

 

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Bourne Guitars, a corporation, reported a $211,000 net §1231 gain for year 6.

b. Assuming Bourne’s nonrecaptured net §1231 losses from years 1–5 were $286,000, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?

 

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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