The Chart Below Describes the § 1231 Assets Sold by the Ecru

question 103

Essay

The chart below describes the § 1231 assets sold by the Ecru Company (a sole proprietorship) this year. Compute the gain or loss from each asset disposition and determine the net § 1231 gain treated as long­term capital gain for the year. Assume there is a § 1231 lookback loss of $4,000.
$$\begin{array} { l c c r r r } \text { Asset } & \text { Acquired } & \text { Sold } & \text { Cost } & \text { Deprecintion } & \text { Sale } \\& & & & & \text { Price } \\\text { Stamping machine } & 3 / 10 / 10 & 8 / 10 / 2014 & \$ 40,000 & \$ 29,736 & \$ 32,000 \\\text { Factory building } & 2 / 12 / 07 & 7 / 23 / 2014 & 80,000 & 18,038 & 90,000 \\\text { Tractor } & 5 / 16 / 09 & 11 / 13 / 2014 & 52,000 & 52,000 & 30,000 \\\text { Overhead crane } & 1 / 1 / 2 / 03 & 2 / 25 / 2014 & 74,000 & 74,000 & 18,000\end{array}$$

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Definitions:

Work Performance

The evaluation of how efficiently and effectively an individual or group completes tasks and achieves goals at work.

Employment Situations

The various conditions or scenarios relating to an individual's job status, including full-time, part-time, unemployed, or self-employed statuses.

Petty Difference

Small, insignificant disagreements or variations that are minor in the context of the larger situation.

Coworker's Theft

The act of stealing or taking without permission assets or resources by an individual from their place of employment or colleagues.