Gupta Company made the following sales of capital assets this year.
What is the effect of the three sales on Gupta's taxable income?

Question

Quizplus · Accepted Answer

Gupta can deduct its $12,200 capital loss on the sale of asset 1 against the $12,900 total capital gain on the sales of assets 2 and 3.
 $$\begin{array} { l r r r r } 
& \text { Tax Basis } & & \text { Sale Price } \
\text { Asset 1 } & \$  60,000& &\$ 47,800 \
\text { Asset 2 } & 112,500 & & 116,000 \
\text { Asset 3 } & 13,000 & & 22,400
\end{array}$$

Gupta Company Made the Following Sales of Capital Assets This