P&G Corporation, a C corporation, sold the following business use assets in 2022. Compute the amount and character of any gain or loss P&G Corporation must report from the disposition of each asset (e.g., §1231 gain or loss, ordinary gain or loss, §1245 recapture, etc.). Assume that P&G Corporation has no Section 1231 losses in prior years. Please show your work and explain your calculations. Asset Acquired Sold Cost 10/7/2021 8/16/2022 $50,000 1/13/2020 5/16/2022 $208,000 7/23/2014 2/12/2022 $320,000 7/23/2014 2/12/2022 $100,000 Computer Mfg. Equipment Office building Land Cost Adjusted Recovery Basis Sales Price $45,000 $10,000 $40,000 $98,852 $109,148 $180,000 $60,000 $260,000 $400,000 $0 $100,000 $80,000

P&G Corporation, a C corporation, sold the following business use assets in 2022. Compute the amount and character of any gain or loss P&G Corporation must report from the disposition of each asset (e.g., §1231 gain or loss, ordinary gain or loss, §1245 recapture, etc.). Assume that P&G Corporation has no Section 1231 losses in prior years. Please show your work and explain your calculations. Asset Acquired Sold Cost 10/7/2021 8/16/2022 $50,000 1/13/2020 5/16/2022 $208,000 7/23/2014 2/12/2022 $320,000 7/23/2014 2/12/2022 $100,000 Computer Mfg. Equipment Office building Land Cost Adjusted Recovery Basis Sales Price $45,000 $10,000 $40,000 $98,852 $109,148 $180,000 $60,000 $260,000 $400,000 $0 $100,000 $80,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 73P

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