Nicole has the following transactions related to her investments and her sole proprietorship during 2013:
(1)Stock that was purchased in 2008 is sold at a loss of $12,000.
(2)Bonds that were purchased in 2013 are sold at a gain of $6,000.
(3)A building used in her business is sold at a gain of $17,000.The building was purchased in 1996 and $24,000 of depreciation had been taken on the building.
(4)Equipment purchased in 2008 is sold at a loss of $16,000.Depreciation of $25,000 had been taken prior to the sale.
(5)A delivery van is destroyed in an accident.Nicole realizes a gain of $5,000 on the van.She had deducted $3,000 of depreciation on the van prior to the accident.She does not intend to replace the van.
a.Determine the character of each gain or loss:

b.Determine the effect of the gains and losses on Nicole's current-year adjusted gross income.

Question

Nicole has the following transactions related to her investments and her sole proprietorship during 2013:
(1)Stock that was purchased in 2008 is sold at a loss of $12,000.
(2)Bonds that were purchased in 2013 are sold at a gain of $6,000.
(3)A building used in her business is sold at a gain of $17,000.The building was purchased in 1996 and $24,000 of depreciation had been taken on the building.
(4)Equipment purchased in 2008 is sold at a loss of $16,000.Depreciation of $25,000 had been taken prior to the sale.
(5)A delivery van is destroyed in an accident.Nicole realizes a gain of $5,000 on the van.She had deducted $3,000 of depreciation on the van prior to the accident.She does not intend to replace the van.
a.Determine the character of each gain or loss:
 
b.Determine the effect of the gains and losses on Nicole's current-year adjusted gross income.

Quizplus · Accepted Answer

The Answer of Nicole has the following transactions related to her investments and her sole proprietorship during 2013:
(1)Stock that was purchased in 2008 is sold at a loss of $12,000.
(2)Bonds that were purchased in 2013 are sold at a gain of $6,000.
(3)A building used in her business is sold at a gain of $17,000.The building was purchased in 1996 and $24,000 of depreciation had been taken on the building.
(4)Equipment purchased in 2008 is sold at a loss of $16,000.Depreciation of $25,000 had been taken prior to the sale.
(5)A delivery van is destroyed in an accident.Nicole realizes a gain of $5,000 on the van.She had deducted $3,000 of depreciation on the van prior to the accident.She does not intend to replace the van.
a.Determine the character of each gain or loss:
 
b.Determine the effect of the gains and losses on Nicole's current-year adjusted gross income.

Nicole Has the Following Transactions Related to Her Investments and Her