Reference no: EM131756566

Comprehensive Problem. Mark Mullins had the following transactions or involuntary conversions during 2013:

a. His diamond gemstones costing $4,000 in 2007 were sold for $5,000.

b. His office building owned for four years was damaged by fire. The loss after insurance recovery was $12,000.

c. Equipment purchased in 2009 for $18,000 with a basis at the time of sale of $6,000 was sold for $11,000 on January 1, 2013.

d. An apartment building purchased on January 1, 1986, for $300,000 was sold for $124,000 on January 1, 2013. Mark took accelerated depreciation of $236,000. Straight-line depreciation would have been $200,000.

e. Land used in his business for four years was condemned by the state. The award was $60,000. Cost of the land was $74,000. No replacement of the property was made.

f. 200 shares of Carter Corporation stock were sold for $19,000 on August 25, 2013. The stock was originally purchased in 2008 for $15,000.

g. 100 shares of Dalton Corporation stock were sold for $8,000 on July 23, 2013. The stock was originally purchased on February 10, 2013, for $2,000.

Mark, single and age 42 with no dependents, has adjusted gross income of $56,000 and itemized deductions of $8,000 without considering the above items. What is Mark's taxable income for 2013?