17. Vertical, Inc., has a 2021 net 1231 gain of $67,000 and had a...
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17. Vertical, Inc., has a 2021 net 1231 gain of $67,000 and had a $22,000 net 1231 loss in 2020. For 2021, Vertical's net 1231 gain is treated as:
a.$67,000 ordinary gain
b.$67,000 capital gain
c.$45,000 long-term capital gain and $22,000 ordinary gain.
d.$45,000 long-term capital gain and $22,000 ordinary loss.
18. Data, Inc., purchased and placed in service a $5,000 computer on August 24, year 3. This is
the only asset purchase during the year. Section 179 expensing was not elected. Using the excerpt of the MACRS half-year convention table below, what is the MACRS depreciation in year 3 for the computer?
RecoveryPeriod
5-Year
7-Year
10-Year
1
20%
14.29%
10%
2
32%
24.49%
18%
3
19.2%
17.49%
14.4%
a. $500
b. $715
c. $960
d. $1,000
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