Question

Moran owns a building he bought during year 0 for $200,000. He sold the building in year 6. During the time he held the building he depreciated it by $54,500.

What is the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? (Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.)

b. Moran received $245,000.

Amount Description Total Gain/(Loss) Recognized Remaining $1231 gain (loss)

Answer 1

fy Description Explanation Amount 1. Amount realized $ 2450w 2 original Basis & 20000 3 Accumulated Depreciation $ 54500 u $ 145500 Adjusted basis (2) - (3) 3. Gain (200) 99.500 Recognized (1) -(4) 6 unrecaptured $1250 gain (123\geon) & susoo Lesser of(s) (3) 7 Remaining $1231 garn & usou (5) - Total § 123l gain $ 99500 6 + 7 Thank you