Reference no: EM132099811

Question - During 2015, Tom sold Sears stock for $10,000. The stock was purchased 4 years ago for $13,000. Tom also sold Ford Motor Company bonds for $35,000. The bonds were purchased 2 months ago for $30,000. Home Depot stock, purchased 2 years ago for $1,000, was sold by Tom for $2,500.

Calculate Tom's net gain or loss, and indicate the nature of the gain or loss.

William sold Section 1245 property for $25,000 in 2015. The property cost $37,000 when it was purchased 5 years ago. The depreciation claimed on the property was $17,000.

If an amount is zero, enter "0".

a. Calculate the adjusted basis of the property.

b. Calculate the recomputed basis of the property.

c. Calculate the amount of ordinary income under Section 1245.

d. Calculate the Section 1231 gain.