Help Seve & Required information The following information applies to the questi
ID: 2523584 • Letter: H
Question
Help Seve & Required information The following information applies to the questions displayed below Moran owns a building he bought during year O for $198,000 He sold the building in year 6.During the time he held the building he depreciated it by $50,000 What is the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? (Loss amounts should be indicated by e minus sign Enter NA if a situation is not appliceble. Leave no answer blenk. Enter zero if applicable. o. Moran received $206,000 Remaining 51231 gan oss) Pre 678 m Next > F10 F11 F12 DEL P4 BACK SPAC 0 NTER BN SHIFTExplanation / Answer
Moran bought the building at a price of $198,000 in year 0
He depreciated the building by $50,000 till year 6
Book value of building as on date of sale
= $(198,000 - 50,000)
= $ 148,000
Moran sold the building for $206,000
Gain on sale of building
= $(206,000 - 148,000)
= $ 58,000
The gain is characterized as long term capital gain.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.