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

---

Definitions:

Industrial Buying Practice

The systematic process that organizations use to make purchase decisions regarding raw materials, processed materials, or professional services.

Products and Services

Goods that are manufactured or created for sale, and activities or benefits offered for consumption, respectively.

Supply Partnerships

Collaborative agreements between companies and their suppliers aimed at optimizing costs, quality, and supply chain efficiency.