How much is Lexington depreciation recapture potential

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Problem - The Lexington partnership has a depreciable business asset (personal property) that it originally purchased for $60,000. The asset now has an adjusted basis of $36,000 and a market value of $70,000. The partnership has no other potential hot assets. Ambroz sells his 25% interest in the partnership.

Required -

a. How much is Lexington's depreciation recapture potential?

b. How much ordinary income does Ambroz recognize when he sells this partnership interest?

Reference no: EM132648344

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