Nicole Has the Following Transactions Related to Her Investments and Her

question 47

Essay

Nicole has the following transactions related to her investments and her sole proprietorship during 2013:
(1)Stock that was purchased in 2008 is sold at a loss of $12,000.
(2)Bonds that were purchased in 2013 are sold at a gain of $6,000.
(3)A building used in her business is sold at a gain of $17,000.The building was purchased in 1996 and $24,000 of depreciation had been taken on the building.
(4)Equipment purchased in 2008 is sold at a loss of $16,000.Depreciation of $25,000 had been taken prior to the sale.
(5)A delivery van is destroyed in an accident.Nicole realizes a gain of $5,000 on the van.She had deducted $3,000 of depreciation on the van prior to the accident.She does not intend to replace the van.
a.Determine the character of each gain or loss:

b.Determine the effect of the gains and losses on Nicole's current-year adjusted gross income.

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Definitions:

AV Valves

The atrioventricular valves, which are located between the atria and ventricles of the heart and regulate blood flow.

Systolic Pressure

The maximum arterial pressure during contraction of the heart's left ventricle.

Diastolic Pressure

The pressure in the arteries when the heart rests between beats, representing the minimum arterial pressure during relaxation and dilatation of the ventricles.

Blood Pressure

The pressure exerted by circulating blood upon the walls of blood vessels, often measured to assess heart and vascular health.