Question

00 Required information Problem 3-54 (LO 3-5) [The following information applies to the questions displayed below.] Part 1 of 2 Hans runs a sole proprietorship. Hans has reported the following net $1231 gains and losses since he began business. Net $1231 gains shown are before the look-back rule. (Leave no answer blank. Enter zero if applicable.) points Net $1231 Gains/(Losses) $(65,000) 15,000 Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 (current year) Print 10,000 50,000 1 Problem 3-54 Part-a a. What amount, if any, of the year 7 (current year) $50,000 net $1231 gain is treated as ordinary income? Ordinary income $ 50,000

Answer 1

period Explanation ordinary ITCG w calculate ordinary income for year net § 1231 gain loss) Recaptured withings Non recapered $1231 Les (65000) 165000) yearl 110 000) Kelinary los non Recaplottes ordinary gain Mon-Recabatered losses 15,000 15000 15,000 (50,000 yor 2 (65,000068- 15000 gain) gar 3 (50,000) Non-Recábtired year 4 $0 (50,000) mpy-recektered year 5 10,000 (40,000) €0,000-10,00) gear 6 o Mon Recaptured losses only carry forward stears gara 50,000 50,000 $0 $50,000 is $1231 50,000

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