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Jim,the Owner of a Sole Proprietorship,sold the Following Assets in 2017

question 87

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Jim,the owner of a sole proprietorship,sold the following assets in 2017:
 Asset  Cost  Acquired  Depreciation  Sale Price  Sale Date  Truck $48,00007/31/15$7,737$35,00007/22/17 Trailer 31,00012/15/1519,09624,00005/30/17 Land $67,00002/15/15075,00006/30/17\begin{array}{lrrrr}\text { Asset }&\text { Cost }&\text { Acquired }&\text { Depreciation }&\text { Sale Price }&\text { Sale Date }\\\text { Truck }&\$48,000&07/31/15&\$7,737&\$35,000&07/22/17\\\text { Trailer }&31,000&12/15/15&19,096&24,000&05/30/17\\\text { Land }&\$67,000&02/15/15&0&75,000&06/30/17\end{array} Complete the following table: and the character of the realized and recognized gain or loss from the sale of each asset.Assume the land was held for investment and had a FMV of $73,000.
 Amount  The gain (loss)  Section  subject to  is considered 1231 or  Section  to be ordinary  AdjustedGain (Loss) 12451245 capital for tax  Asset  Basis  Recognized  Asset  Recapture  purposes \begin{array}{lllccc}&&&&\text { Amount }&\text { The gain (loss) }\\&&&\text { Section }&\text { subject to }&\text { is considered }\\&&&1231 \text { or }&\text { Section }&\text { to be ordinary }\\& \text { Adjusted} & \text {Gain (Loss) } & 1245 & 1245 & \text { capital for tax } \\\text { Asset } & \text { Basis } & \text { Recognized } & \text { Asset } & \text { Recapture }&\text { purposes } \\\hline\end{array}

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Definitions:

Sales Message

Communication aimed at persuading potential customers to purchase or consider a product or service.

Central Selling Feature

The key attribute or benefit of a product or service that is emphasized in marketing or sales efforts.

AIDA Approach

A marketing model that stands for Attention, Interest, Desire, and Action, used to guide the process of advertising or communication to engage consumers effectively.

Persuasive Message

Communication designed to influence the attitudes, beliefs, or behaviors of the recipient through logical or emotional appeals.

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