Davidson Industries, a sole proprietorship, sold the following assets in 2018:AssetCostAcquiredDepreciationSale PriceSale DateWarehouse$140,00010/10/11 $24,080$162,0003/15/18Truck 21,0001/15/17 7,560 19,6001/14/18Computer 23,0007/31/17 6,095 13,6058/31/18The following questions relate to the sale of the warehouse:(1) What is the adjusted basis of the warehouse?(2) What is the realized gain on the warehouse?(3) What amount of the gain is taxed according to § 1250 rules?(4) What amount is considered a § 1231 gain before netting?The following questions relate to the sale of the truck:(1) What is the adjusted basis of the truck?(2) What is the realized gain on the truck?(3) What amount of the gain is taxed according to § 1245 rules?(4) What amount of the gain is taxed as ordinary income?The following questions relate to the sale of the computer:(1) What is the adjusted basis of the computer?(2) What is the realized gain or loss on the sale?(3) Which IRC section code applies to this asset?
Davidson Industries
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