Gainesville LLC sold the following business assets during the current year:
(1) machinery, $20,000 cost basis, $4,000 depreciation, proceeds $22,000;
(2) automobile, $15,000 cost basis, $12,000 depreciation, proceeds $7,000;
(3) equipment, $15,000 cost basis, $10,000 depreciation, proceeds $4,000;
(4) computer equipment, $35,000 cost basis, $16,000 depreciation, proceeds $15,000;
(5) Winchester had unrecaptured §1231 losses of $5,000 in the prior 5 years.
What is the amount and character of Winchester's gains and losses before the 1231 netting process?

Question

Gainesville LLC sold the following business assets during the current year: 
(1) machinery, $20,000 cost basis, $4,000 depreciation, proceeds $22,000; 
(2) automobile, $15,000 cost basis, $12,000 depreciation, proceeds $7,000; 
(3) equipment, $15,000 cost basis, $10,000 depreciation, proceeds $4,000; 
(4) computer equipment, $35,000 cost basis, $16,000 depreciation, proceeds $15,000; 
(5) Winchester had unrecaptured §1231 losses of $5,000 in the prior 5 years. 
What is the amount and character of Winchester's gains and losses before the 1231 netting process?

Quizplus · Accepted Answer

The Answer of Gainesville LLC sold the following business assets during the current year: 
(1) machinery, $20,000 cost basis, $4,000 depreciation, proceeds $22,000; 
(2) automobile, $15,000 cost basis, $12,000 depreciation, proceeds $7,000; 
(3) equipment, $15,000 cost basis, $10,000 depreciation, proceeds $4,000; 
(4) computer equipment, $35,000 cost basis, $16,000 depreciation, proceeds $15,000; 
(5) Winchester had unrecaptured §1231 losses of $5,000 in the prior 5 years. 
What is the amount and character of Winchester's gains and losses before the 1231 netting process?

Gainesville LLC Sold the Following Business Assets During the Current