Question

Firm OCS sold business equipment with a $21,500 initial cost basis and $8,665 accumulated tax depreciation. In each of the following cases, compute OCS's recaptured ordinary income and Section 1231 gain or loss on sale. (Losses should be indicated with a minus sign. Leave no cell blank. Enter "O" for cells that do not have an amount.) a. Amount realized was $10,300. b. Amount realized was $13,300. c. Amount realized was $17,800. d. Amount realized was $24,300. a. Recaptured ordinary income of Section 1231 gain or loss) Recaptured ordinary income of Section 1231 gain or loss) C. Recaptured ordinary income of Section 1231 gain or loss) d. Recaptured ordinary income of Section 1231 gain or loss)

Answer 1

Date Ans - Particulars Amount realized Adjusted basis $21500 - $8665] Recapture ordinary income Section 1231 loss Amount in & $ 10300 $12835) $ o $ 2535 b. o Amount realized adjusted basis [ 21500 - $8665] Recapture ordinary income Section 1231 hain or loss) $ 13,300 $ {2835 5 $ 465 - A Amount realized Adjusted basis 21.50 -8665) Recapture sainary incorre section 1231 Gain of loss $ 1780 $ 02835 $ 4965 Amount realized Adjusted basis Giso-8665) Recapture ordinary income Equd to. section 1231 Deprecia Hat Cain a loss (11465-8665) come pot $2 Boo & (2835 $ 11465 $8665 $ 2800 Thank you I hope you understand