In 2015, Skylar sold an apartment building for $86,200 cash and a $862,000 note

Question

In 2015, Skylar sold an apartment building for $86,200 cash and a $862,000 note due in two years. Skylar’s cost of the property was $689,600, and he had deducted depreciation of $413,760, $165,504 of which was in excess of what the straight-line amount would have been.

If required, round any division to two decimal places and your final answers to the nearest dollar.

Under the installment sales method, Skylar's total realized gain is $_______. In 2015, he recognizes § 1250 gain of $_______ and § 1231 gain of $_______ .

Explanation / Answer

Installment method Realized Gian Book Value       689,600 Depriciation       413,760 Net Value       275,840 Sales price       948,200 Realized Gain       672,360 Realized gain Under Section 1250 Book Value       689,600 Depriciation as per straight method       248,256 Net Value       441,344 Sales price       948,200 Realized Gain       506,856 Realized gain Under Section 1231 face value       689,600 Net Value       689,600 Sales price       948,200 Realized Gain       258,600

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