Compute David additional tax due as a result of this sale

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Question - David, a single individual, with a marginal tax rate of 35% and a Regular LT Capital Gain tax rate of 15%, owns a warehouse that is used in his sole proprietorship. He purchased the warehouse several years ago for $150,000, and has claimed $20,000 of MACRS-SL depreciation on the warehouse through 2019. In October 2019, he sold the warehouse for $200,000. Assuming that this is David's only Sec 1231 or capital transaction for the year, and he has NO non-recaptured Sec 1231 losses from prior years, compute David's additional tax due as a result of this sale.

Reference no: EM132509765

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