1. In 2016, XYZ Enterprises purchases equipment for $60,000. The equipment is sold in 2019...
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1. In 2016, XYZ Enterprises purchases equipment for $60,000. The equipment is sold in 2019 after the company has taken $40,000 in depreciation. The sales price is S57,000. What is the recognized gain (loss) on the sale. If the sale results in a gain, how much is taxed as ordinary income under section 1245 and how much is taxed as long term capital gain under section 1231? 2. Assume the same as #1 above except the sales price is $16,000 3. Assume the same as #1 above except the sales price is $65,000 4. Assume the same facts as #3 above except the company had an unrecaptured net section 1231 loss of $3,000 in 2016
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