Jay sold three items of business equipment for a total of $300,000. None of the...
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Jay sold three items of business equipment for a total of $300,000. None of the equipment was appraised to determine its value. Jays cost and adjusted basis for the assets are shown below. Asset Cost Adjusted Basis Skidder $230,000 $ 40,000 Driller 120,000 60,000 Platform 620,000 0 Total $970,000 $100,000 Jay has been unable to establish the fair market values of the three assets. All he can determine is that combined they were worth $300,000 to the buyer in this arms length transaction.How would Jay allocate the sale price and figure the gain or loss on the sale of the three assets? Additionally, What is the gain or loss on each individual asset?
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You can see the logs in the Dashboard.