What are the amount and nature of recognized gain or loss

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Reference no: EM131967972

Larry is the sole proprietor of a tramplonie shop. During 2015, the following transactions occured:

1. unimproved land adjacent to the store was condemed by the city on February 1. The condemnation proceeds were 15,000. The land, aquired in 1985 and had an allocable basis of 40,000. Larry has addition parking accross the street and plans to use the condemnation proceedss to build his inventory.

2. a truck used to deliver trampolines was sold on January 2 for $3,500. The truck was purchased on January 2, 2011, for $6,000. On the date of the sale, the adjusted basis was zero

3. Larry sold an antique rowing machine at an auction. Net proceeds were $4,900. The rowing machine was purchased as used equipment 17 years ago for $5,200 and is fully depreciated.

4. Larry sold an apartment building for $300,000 on September 1. The rental property was purchased on September 1, 2012, for $150,000 and was being depreciated over a 27.5 year life using the straight-line method. At the date of the sale, the adjusted basis was $124,783.

5. Larrys personal yacht was stolen on september 5th. The yacht had been purchased in August at a cost of $25,000. The fair market value immediately perceding the theft was $19,600. Larry was insured for 50% of the original cost, and he recieved $12,500 on December 1.

6. Sold a Buick on May 1 for $9,600. The vehicle had been used exculively for personal purposes. IT was Purchased on september 1. 2012, for $20,800.

7. Larrys trampoline stretching machine ( owned 2 years) was stolen on May 5, but the business's insurance company will not pay any of the machine's value because Larry faild to pay the insurance premium. The machine had a fair markety value of $8,000 and an adjusted basis for $6,000 at the time of theft.

8. Larry had an AGI of $102,000 from sources other than those described above.

All in bold please answer (below).

• Larry has not nonrecaptured § 1231 lookback losses.

• For each transaction, what are the amount and nature of recognized gain/loss?

• What is Larry's 2016 AGI?

Reference no: EM131967972

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