Nicole has the following transactions related to her investments and her sole proprietorship during 2018:
?
(1) Stock that was purchased in 2010 is sold at a loss of $ \$ 12,000 $.
(2) Bonds that were purchased in 2018 are sold at a gain of $ \$ 6,000 $.
(3) A buil ding used in her business is sold at a gain of $ \$ 17,000 $. The building was purchased in 1997 and $ \$ 24,000 $ of depreciation had been taken on the building.
(4) Equipment purchased in 2010 is sold at a loss of $ \$ 16,000 $. Depreciati on 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 2018:
?
 (1) Stock that was purchased in 2010 is sold at a loss of $ \$ 12,000 $.
(2) Bonds that were purchased in 2018 are sold at a gain of $ \$ 6,000 $.
(3) A buil ding used in her business is sold at a gain of $ \$ 17,000 $. The building was purchased in 1997 and $ \$ 24,000 $ of depreciation had been taken on the building.
(4) Equipment purchased in 2010 is sold at a loss of $ \$ 16,000 $. Depreciati on 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 2018:
?
 (1) Stock that was purchased in 2010 is sold at a loss of $ \$ 12,000 $.
(2) Bonds that were purchased in 2018 are sold at a gain of $ \$ 6,000 $.
(3) A buil ding used in her business is sold at a gain of $ \$ 17,000 $. The building was purchased in 1997 and $ \$ 24,000 $ of depreciation had been taken on the building.
(4) Equipment purchased in 2010 is sold at a loss of $ \$ 16,000 $. Depreciati on 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