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Buckley, an individual, began business two years ago and has never sold a 1231 asset....

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Accounting

Buckley, an individual, began business two years ago and has never sold a 1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Asset Original Cost Accumulated Depreciation Gain/Loss Computers $ 6,000 $ 2,000 $ (3,000) Machinery 10,0004,000(2,000) Furniture 20,00012,0007,000 Building 100,00010,000(1,000) Assuming Buckley's marginal ordinary income tax rate is 32 percent, answer the questions for the following alternative scenarios: Required:
c1. Assume that the amount realized increased so that the building was sold at a $15,000 gain instead. What is the amount and character of Buckley's gains or losses for the current year?
1231 Gain $_______________
1245 Gain $_______________
c2. Calculate Buckley's tax liability or tax savings for the year.
Tax Liability $________________
Please provide detailed explantion for your answer and fill in the blanks with the appropriate answer.

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