1)Aaron , a college student, purchased a truck in 2013 for $7,000. He used the t
ID: 2720041 • Letter: 1
Question
1)Aaron , a college student, purchased a truck in 2013 for $7,000. He used the truck 75 % of the time as a distributor for the local newspaper and 25 % of the time for personal use. The truck has a five-year recovery period, and he claimed depreciation deductions of $1,050 in 2013 and $1,680 in 2014. Aaron sells the truck on June 20, 2015, for $2,800.
Please look up MACRS half-year convention rates.
Requirements
B) Determine Aaron 's realized and recognized gain or loss and its character.
2)Lee owns a truck used in his trade or business that cost $60,000 and has an adjusted basis of $29,000.
Lee is allowed depreciation of $10,000 for the new truck.
Determine:
a.
Realized gain on the exchange
b.
Recognized gain on the exchange
c.
Basis of truck received
d.
Recognized gain, and the character of the gain, if the sales price of the truck is $53,000
e.
Recognized gain, and the character of the gain, if the sale price of the truck is $62,000
A) What is the amount of allowable depreciation in 2015 ?B) Determine Aaron 's realized and recognized gain or loss and its character.
2)Lee owns a truck used in his trade or business that cost $60,000 and has an adjusted basis of $29,000.
The truck is exchanged for a new truck that is like-kind property with a FMV of $40,000. Prior to selling the new truck two years later,Lee is allowed depreciation of $10,000 for the new truck.
Determine:
a.
Realized gain on the exchange
b.
Recognized gain on the exchange
c.
Basis of truck received
d.
Recognized gain, and the character of the gain, if the sales price of the truck is $53,000
e.
Recognized gain, and the character of the gain, if the sale price of the truck is $62,000
Explanation / Answer
A)answer.
Note
B)
Amount of allowable depreciation in 2015 amount($) Writted down value of asset 3360 Depreciation 645 allowable depreciation to the extent of 75% 484*Related Questions
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