Copper Industries (a sole proprietorship) sold three 1231 assets during 2015. Da

Question

Copper Industries (a sole proprietorship) sold three 1231 assets during 2015.

Data on these property dispositions are as follows:

Asset Cost Acquired Depreciation Sold for Sold on

Rack $110,000 10/10/12 $70,000 $55,000 10/10/15

Forklift 45,000 10/16/11 21,000 15,000 10/10/15

Bin 97,000 03/12/14 31,000 60,000 10/10/15

a. Determine for each asset a gain or loss and the amount of gain or loss ; The recapture amount: and the Balance of the gain/loss.

B. Copper has ( ?$?) of ( ordinary income / long-term capital gains) due to § 1245 recapture (?$) of § 1231(gain/loss)

C) Assuming that Copper has $6,000 nonrecaptured net 1231 losses from prior years, how much of the 2015 recognized gains is treated as capital gains?

Explanation / Answer

Copper Industries (a sole proprietorship) sold three 1231 assets during 2015. Da

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