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On January 1, 2006, Stephanie Bridges acquired depreciable real property for $50,000. She used straight-line depreciation to compute the asset's cost recovery. The asset was sold for $96,000 on January 3, 2015, when its adjusted basis was $38,000. Assuming the property is residential real property, there is a 1231 gain of $58000, of which how much is treated as unrecaptured 1250 gain?

On January 1, 2006, Stephanie Bridges acquired depreciable real property for $50,000. She used straight-line depreciation to compute the asset's cost recovery. The asset was sold for $96,000 on January 3, 2015, when its adjusted basis was $38,000. Assuming the property is residential real property, there is a 1231 gain of $58000, of which how much is treated as unrecaptured 1250 gain?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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how much is treated as unrecaptured 1250 gain?

On January 1, 2006, Stephanie Bridges acquired depreciable real property for $50,000. She used straight-line depreciation to compute the asset's cost recovery. The asset was sold for $96,000 on January 3, 2015, when its adjusted basis was $38,000. Assuming the property is residential real property, there is a 1231 gain of $58000, of which how much is treated as unrecaptured 1250 gain?
Transcribed Image Text:On January 1, 2006, Stephanie Bridges acquired depreciable real property for $50,000. She used straight-line depreciation to compute the asset's cost recovery. The asset was sold for $96,000 on January 3, 2015, when its adjusted basis was $38,000. Assuming the property is residential real property, there is a 1231 gain of $58000, of which how much is treated as unrecaptured 1250 gain?
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