[Sticky] During the current year, Hugo sells equipment for $150,000.  

  RSS

Raj Maurya
(@rajmaurya)
Member Admin
Joined: 2 years ago
Posts: 8
11/02/2019 3:15 pm  

During the current year, Hugo sells equipment for $150,000. The equipment cost $175,000 when placed in service two years ago, and $55,000 of depreciation deductions were allowed. The results of the sale are (how much gain and what rate is it taxed at)?


Solution

Particulars Amount
Equipment Cost $175,000
Less: Allowed Depreciation $55,000
Total Value of Assets $120,000
Selling price of Equipment $150,000
Income from sell of Equipment $30,000

So, According to Section 1245 generate ordinary income of $30,000.


Quote
Topic Tags
Share:
  
Working

Please Login or Register