Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ****** scenario 4: depreciation recapture: the

****** Scenario 4: Depreciation Recapture: The Nitty-Gritty Sole proprietor sells...

70.2K

Verified Solution

Question

Accounting

******
Scenario 4: Depreciation Recapture: The Nitty-Gritty
Sole proprietor sells several items of business equipment, each with these details:
Item A: Orig. Cost $20,000, Accum. Deprec. $18,000, Sold for: $5,000
Item B: Orig. Cost $50,000, Accum. Deprec. $60,000, Sold for: $12,000
Item C: Orig Cost $35,000, Accum. Deprec. $22,000, Sold for: $8,000
Net Business Income (excluding these sales): $80,000
Interest and Dividend Income: $600
Itemized Deductions: $14,000
Allowable deduction for self-employment tax: $6,500
Calculate:
The type of gain/loss (ordinary, capital, Sec. 1231) and amount for each item.
AGI, Taxable Income, and Total Tax Liability

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students