What are properties sold, Other business expenses (incl.

What are properties sold

Assignment Help Accounting Basics

Reference no: EM132750695

Question - Dean and Ellen Price are married and have a manufacturing business.

They bought a piece of business equipment (7-year personal property) on 4/1/2018 for $50,000. Use half-year convention to calculate the MACRS depreciation deduction on the equipment for 2018 and 2019.

They also has a pick-up truck used for business (5-year recovery period) acquired on 8/23/2018 for $25,000. On 11/15/2019, he sold the pick-up truck for $24,000. Use the half-year convention to calculate the MACRS depreciation on the truck for 2018 and 2019.

On 10/26/2019 Dean sold his old storage building used for his business for $220,000. They purchased the building in 2001 for $100,000. Total depreciation (accumulated depreciation) taken on the building is $20,000.

His 2019 Business income and expenditures (Schedule -C):

Sales $657,500

Cost of goods sold $315,000

Other business expenses (incl. deprecation taken on the storage building) $140,000

In 2019 Dean also sold various assets. The information about the selling price and depreciation of the property is listed below.

Office Tables: Purchased 4/4/2018, Sold on 10/16/2019 for $2,900 , Initial Cost $3,000, 2019 Depriciation Amount $375, Acc Depr $825

Office Chairs: Purchased 3/1/2015, Sold on 11/8/2019 for $4,000 , Initial Cost $8,000, 2019 Depriciation Amount $1,000, Acc Depr $2,200

Mkt Securities: Purchased 2/1/2019, Sold on 12/1/2019 for $20,000, Initial Cost $12,000, 2019 Depriciation Amount $0, Acc Depr $0

Land held for investment: Purchased 7/1/2019, Sold on 11/29/2019 for $48,000, Initial Cost $45,000, 2019 Depriciation Amount $0, Acc Depr $0

In 2019 Dean sold his wine collection for $9,000, which is bought two years ago for $8,000.

They also has a short-term capital loss carryover of $10,000 from 2009.

Required -

1. What are properties sold that are Section 1245?

2. What is the Total Unrecaptured Section 1250 Gain of the building?

Reference no: EM132750695

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