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  3. the chart below describes the 1231 assets sold by

The chart below describes the 1231 assets sold by the Ruff-n-Ready Company (a sole...

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Accounting

The chart below describes the 1231 assets sold by the Ruff-n-Ready Company (a sole proprietorship) this year. Compute the gain or loss from each asset disposition and determine the net 1231 gain treated as long-term capital gain for the year and the ordinary gain due to 1245 recapture and the lookback loss provision. Assume there is a 1231 lookback loss of $5,000

Acquired

Sold

Cost

Depreciation

Sale Price Asset

3/10/07

8/10/2018

$60,000

$49,900

$34,000 Machine

Pres

2/12/04

7/23/2018

78,000

10,000

98,000 Press

Trac

5/16/06

11/13/2018

57,050

57,050

40,000 Tractor

Over

11/12/00

2/25/2018

69,000

69,000

19,000 Crane

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