Dancing Feet Company, a sole proprietorship, acquired a building for use in the business on April 15, 2013, for $475,000. Straight-line depreciation allowed was $25,386. Dancing Feet Company sold the building for $380,000 on May 1, 2015:
a. What is the adjusted basis of the property at the time of the sale?
b. What is the amount of the gain (loss) upon the sale of the building?
c. What is the nature of the gain (loss)?

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The Answer of Dancing Feet Company, a sole proprietorship, acquired a building for use in the business on April 15, 2013, for $475,000. Straight-line depreciation allowed was $25,386. Dancing Feet Company sold the building for $380,000 on May 1, 2015:
a. What is the adjusted basis of the property at the time of the sale?
b. What is the amount of the gain (loss) upon the sale of the building?
c. What is the nature of the gain (loss)?

Dancing Feet Company, a Sole Proprietorship, Acquired a Building for Use