The Following Table Describes the § 1231 Assets Sold by Ecru

question 44

Essay

The following table describes the § 1231 assets sold by Ecru 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 $4,000. $$\begin{array} { l c c c c c } \text { Asset } & \text { Acquired } & \text { Sold } & \text { Cost } & \text { Depreciation } & \text { Sale Price } \\\begin{array} { l } \text { Stamping } \\\text { machine }\end{array} & 3 / 10 / 15 & 8 / 10 / 19 & \$ 40,000 & \$ 29,736 & \$ 32,000 \\\begin{array} { l } \text { Factory } \\\text { building }\end{array} & 2 / 12 / 12 & 7 / 23 / 19 & 80,000 & 18,838 & 90,000 \\\text { Tractor } & 5 / 16 / 14 & 11 / 13 / 19 & 52,000 & 52,000 & 30,000 \\\begin{array} { l } \text { Overhead } \\\text { crane }\end{array} & 11 / 12 / 08 & 2 / 25 / 19 & 74,000 & 74,000 & 18,000\end{array}$$ 11/12/08 2/25/19 74,000 74,000 18,000

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Definitions:

Ascending Colon

The first part of the colon into which undigested food from the small intestine is passed, ascending on the right side of the abdomen.

Transverse Colon

A part of the large intestine that crosses the abdomen horizontally from right to left, involved in the absorption of water and salts.

Vertebrate Digestive Tract

The system of organs within vertebrates that ingests, digests, and absorbs nutrients, and expels waste, beginning with the mouth and ending with the anus.

Surface Area

The total area that the surface of an object occupies, which is significant in various physical and biological processes due to its impact on rates of reaction and exchange.