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

question 64

Essay

The chart below describes the § 1231 assets sold by the Tan Company (a sole proprietorship) this year.Compute the gain or loss from each asset disposition and determine the net § 1231 gain treated as long-term capital gain for the year.Assume there is a § 1231 lookback loss of $14,000. $$\begin{array} { l c c c c c } \text { Asset } & \text { Acquired } & \text { Sold } & \text { Cost } & \text { Depreciation } & \text { SalePrice } \\\text { Stamping machine } & 3 / 10 / 13 & 8 / 10 / 17 & \$ 40,000 & \$ 29,736 & \$ 2,000 \\\text { Factory building } & 2 / 12 / 10 & 7 / 23 / 17 & 80,000 & 18,838 & 90,000 \\\text { Tractor } & 5 / 16 / 12 & 11 / 13 / 17 & 52,000 & 52,000 & 60,000 \\\text { Overhead crane } & 11 / 12 / 06 & 2 / 25 / 17 & 74,000 & 74,000 & 18,000\end{array}$$

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Definitions:

Bringing Novelty

The act of introducing something new, fresh, or unusual into a situation or environment.

Premature Commitment

Making a decision or commitment too early without thoroughly considering all options and potential outcomes.

Incompatible Attachment Styles

Divergent patterns of handling emotional bonding and relationships, often leading to conflicts in partnerships or friendships.

Conflict Management Skills

Techniques and capabilities that help individuals navigate and resolve disagreements or disputes effectively.