Question

17-35 Section 1245 Recapture. This year N sold three different pieces of equipment used in her business: Depreciation Allowed Holding Period Sales Description Price Cost Processing machine $1,200 3 years 4 years 2 years $1,400 $600 Work table 1,600 1,300 500 Automatic stapler 500 900 300 What are the amount and character of N's gain or loss from these transactions?

Answer 1

Solution - N sold wice puces egument used en hen business. The absolute amount of gaun Or Love on all of w e equipments shall be calculated as follows - Grain/ cou) = salle Price - (cast Depreciation ciu absolute cut) allowed) retwen is Hence, Alo calculated as Holding period Rewe Creu annen) Holding period follout. Gain (ass) 2 - cost Price x 10-0x ox Holding Hence, for Description the given Holding Sales Period | Pruce problem, Cost/ Depre- Gain/ ما) ( ciation allowed Holding Period Relwellpa. [e-d-e rucessing Machine 3 years $1,200 $1,400 460o $400 (gain) I 5100 9.52 (positive) 15.38.1. (positive) 5.561 Work Table 4 years $1,600 $1,200 $500 4800 (ее ) $500 $900 €380l $100 2 years Automatic Stapley ) (و | العلم20