"The Lexington partnership has a depreciable business asset (personal prop- erty) that it originally purchased...
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Accounting
"The Lexington partnership has a depreciable business asset (personal prop- erty) that it originally purchased for $60,000. The asset now has an adjusted basis of $36,000 and a market value of $70,000. The partnership has no other poten- tial hot assets. Ambroz sells his 25% interest in the partnership."
"a. How much is Lexingtons depreciation recapture potential?
b. How much ordinary income does Ambroz recognize when he sells this partner- ship interest?
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