The Following Table Describes the § 1231 Assets Sold by Tan

question 10

Essay

The following table describes the § 1231 assets sold by 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 that there is a § 1231 lookback loss of $14,000. $$\begin{array} { l c c c c c } \text { Asset } & \text { Acquired } & \text { Sold } & \text { Cost } & \text { Depreciation } & \text { Sale Price } \\\text { Stamping machine } & 3 / 10 / 15 & 8 / 10 / 19 & \$ 40,000 & \$ 29,736 & \$ 2,000 \\\text { Factory building } & 2 / 12 / 12 & 7 / 23 / 19 & 80,000 & 18,838 & 90,000 \\\text { Tractor } & 5 / 16 / 14 & 11 / 13 / 19 & 52,000 & 52,000 & 60,000 \\\text { Overhead crane } & 11 / 12 / 08 & 2 / 25 / 19 & 74,000 & 74,000 & 18,000\end{array}$$

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Definitions:

Piagetian Stage

Stages of cognitive development proposed by Jean Piaget that describe how children's ability to think and reason evolves as they grow older.

Conservation

In cognitive psychology, Piaget's principle that children learn that quantity does not change with physical rearrangement or appearance of objects.

Classification

The systematic arrangement of entities in a structured form, usually based on common characteristics or attributes.

Preoperational Thought

Describes one of Piaget's stages of cognitive development, typically occurring from age 2 to 7, marked by symbolic thinking, egocentrism, and a lack of logical reasoning.