In the current year, Helen sold Section 1245 property for $6,000. The property cost $26,000 when it was purchased 5 years ago. The depreciation claimed on the property was $24,000.
a.Calculate the adjusted basis of the property.
b.Calculate the amount of ordinary income under Section 1245.
c.Calculate the Section 1231 gain.

Question

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The Answer of In the current year, Helen sold Section 1245 property for $6,000. The property cost $26,000 when it was purchased 5 years ago. The depreciation claimed on the property was $24,000.
a.Calculate the adjusted basis of the property.
b.Calculate the amount of ordinary income under Section 1245.
c.Calculate the Section 1231 gain.

In the Current Year, Helen Sold Section 1245 Property for $6,000