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:

Brazil

A country in South America that is the largest both in terms of area and population on the continent, known for its diverse ecosystems and vibrant culture.

Slave Ownership

Refers to the historical and inhumane practice of possessing individuals as property, primarily seen in pre-Civil War United States among other parts of the world.

Southern Households

Homes in the Southern United States, often historically characterized by their connection to plantation economies and reliance on slave labor before the Civil War.

Internal Slave Trade

The buying and selling of slaves within a country, particularly referring to the trade of enslaved African Americans within the United States before the Civil War.