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Moab Inc, manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. (Do not round intermediate computations.) a. Moab Inc. sold a machine that it used to make computerized gadgets for $27,300 cash. It originally bought the machine for $19,200 three years ago and has taken $8,000 in depreciation. b. Moab Inc. held stock in ABC Corp., which had a value of $12,000 at the beginning of the year. That same stock had a value of $15,230 at the end of the year. c. Moab Inc. sold some of its inventory for $7,000 cash. This inventory had a basis of $5,000. d. Moab Inc, disposed of an office building with a fair market value of $75,000 for another office building with a fair market value of $55,000 and $20,000 in cash. It originally bought the office building seven years ago for $62,000 and has taken $15,000 in depreciation. e. Moab Inc. sold some land held for investment for $28,000. It originally bought the land for $32,000 two years ago. f. Moab Inc. sold another machine for a note payable in four annual installments of $12,000. The first payment was received in the current year. It originally bought the machine two years ago for $32,000 and has claimed $9,000 in depreciation expense against the machine. 9. Moab Inc. sold stock it held for eight years for $2,750. It originally purchased the stock for $2,100. h. Moab Inc. sold another machine for $7,300. It originally purchased this machine six months ago for $9,000 and has claimed $830 in depreciation expense against the asset. 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be 51231, capital, or ordinary. 2. From the recognized gains/losses determined in part 1, determine the net 51231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Inc. also has $2,000 of nonrecaptured net 51231 losses from previous years. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be $1231, capital, or ordinary. (Loss amounts should be indicated by a minus sign.) Realized Recognized $1245 Ordinary $291 Ordinary $1231 Ordinary Capital Asset Gain (Loss) Gain/(Loss) Income Gain/(Loss) Income (Loss) Gain/(Loss) Income 1a 1b 10 1d te 11 19 1h Totals $ $ $ 0 $ 0$ $ 0 $ From the recognized gains/losses determined in part 1, determine the net 91231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Inc. also has $2,000 of nonrecaptured net 51231 losses from previous years. (Loss amounts should be indicated by a minus sign.) $1231 Netting Process: $1231 gain $1231 loss Net 61231 gain Nonrecaptured $1231 losses Net $1231 gain Ordinary Income: $1245 recapture $291 recapture Ordinary income Ordinary loss Ordinary income from $1231 netting Total Capital Gains and Losses: Capital gain Capital loss Net capital gain OMB No 1545-0114 Form 4797 Sales of Business Property (Also involuntary Conversions and Recapture Amounts Under Sections 179 and 280F(b)(2)) Attach to your tax relum Go to www.irs.gov/Form 797 for instructions and the latest information 2019 Department of the Treasury Internal Revenue Service Altachment Sequence No. 27 Name(s) shown on retum Identifying number (Enter as xx-xxxXXX) 1 Enter the gross proceeds from sales or exchanges reported to you for 2019 on Form) 1090-8 o 1000-8 (or substitute statement) that you are including an ine 2. 10. or 20. see instructions. Part 1 Sales or Exchanges of Property Used in a Trade or Business and involuntary Conversions From Other Than Casualty or Theft-Most Property Held More Than 1 Year (see Instructions) (o) Depreciation (b) Date acquired imo. m Cost or other basis (a) Description of (c) Date sold mo property day ) (d) Gross sales price allowed or allowable plus improvements and duy y") since acquisition (a) Gain or loss) Subtract from the sum of (d) and (e) expense of sale 3 Gain, if any, from Form 4651, line 39 4 Section 1231 gain from installments from Form 6252 line 26 or 37 5 Section 1231 gun or loss) from like kind exchanges from Form 1824 6 Garany, from line 32. from other than casualty or the 7 Combine lines 2 through 6. Enter the gain or los here and on the appropriate line as follows Partnerships and corporations Report the gain or (one) following the instructions for Form 1065 Schedule Kline 10, or Form 1120-5, Schedule Kline 9. Skip lines 8, 9, 11 and 12 below Individuals, partners, corporation shareholders, and all others line 72 or a loss, enter the amount from line 7 on line 11 below and skip lines 8 and 9. If line is again and you didn't have any prior year section 1231 loss or they were recaptured in an earlier year, enter the gain from ineas a long-term capital gain on the scheduled with your return and skip lines 9.11 and 12 below 8 Nonrecaptured net section 1231 losses from prior years se instructions line the contromine on line 12 below. Fin more anterie WWW skirtanes 8 and 9. if line 7 is again and you didn't have any prior year section 1231 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on the schedule bed with your return and skip lines 8, 9, 11, and 12 below. 8 Nonrecaptured net section 1231 losses from prior years. see instructions Subtract line from Ine 7. If zero or less, enter. If line 9 is zero, enter the gain from line 7 on line 12 below. If line is more than zero, enter the amount from line 8 on line 12 below and enter the gain from line 9 as a long term capital gain on the Schedule D fled with your return. See Instructions Part 1 Ordinary Gains and Losses (see instructions) 10 Ordinary gains and losses not included on lines 11 through 16 (include property Meld 1 year or less) lolololol (Enter as negative) 11 12 13 14 95 11 Loss, if any, from line 7 12 Gain, fary, from line 7 of amount from ine 8 # applicable 13 Gain, farvy, from line 31 14 Net gain or loss) from Form 4664, line 31 and 36 15 Ordinary gain from installment sales from Form 6252, line 2536 16 Ordinary gain or loss) from the kind exchanges from Form 3824 17 Combine lines 10 through 16 18 For all except individual returns, enter the amount from line 17 on the appropriate line of your return and skip lines a and below. For individual retums, complete lines a and below the loss on line 11 includes a loss from Form 4604, line 35, column (b)), enter that part of the loss here.Enter the loss from income producing property on Schedule A (Form 1040 or Form 1040-SRI. line 16. (Do not include any loss on property used as an employee) Identity as from "Form 4797, line 16a." See instructions 16 17 18 Redetermine the gain or loss) on line 17 excluding the loss of any on line 16a Enter here and on Schedule 1 (Form 1040 or Form 1040-SR). Part Iine 4 NA 10 Form 4797 (2019)

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