The Following Table Describes the § 1231 Assets Sold by Tan

question 80

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:

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and functioning best in relatively bright light.

Rods

Visual sensory receptors found at the back of the retina, responsible for noncolor sensitivity to low levels of light.

Fovea

A small depression in the retina of the eye where visual acuity is highest.

Pupil

The black circular opening in the center of the eye's iris that regulates the amount of light that enters.