Question

ABC Corporation, a calendar-year C corporation, sold several business-use assets during the current year. Information regarding the asset sales is provided below. The company purchased these assets more than one year ago. The building and warehouse were depreciated using the straight-line method.

In the table below, enter the following: 1. amounts of recognized gain(loss); 2. Section 1245 and 1250 recapture; and 3. Section 1231 gain (loss) for each asset sold during the year. Enter gains as positive amounts and losses as negative amounts. If a response is zero, enter a zero (0).

Asset Item	Sellling Price	Cost	Accumulated Depreciation	Recognized Gain (Loss)	Section 1245 Recapture	Section 1250 Recapture	Section 1231 Gain (Loss)
Office furniture	6,500	7,000	4,400
Equipment	4,900	4,000	3,200
Building	75,000	102,000	23,000
Warehouse	60,000	75,000	30,000
Land	33,600	30,000	0
Computers	3,500	20,000	8,000

Answer 1

Assets Item Selling price Cost Accumulated Recognised Depreciation Gain (Loss) Section Section 1245 1250 Recaptur Recaptur Section 1231 Gain Office Furniture 6500 7000 4400 3900 3900 0 0 Equipments 4900 4000 3200 4100 3200 0 900 Building 75000 102000 23000 -4000 0 0 -4000 Warehouse 60000 75000 30000 15000 0 15000 0 Land 33600 30000 0 3600 3600 0 0 Computers 3500 20000 8000 -8500 0 0 -8500