Scroll down to complete all parts of this task. For each item, enter the appropriate...
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Accounting
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For each item, enter the appropriate amounts in the associated cells. If the amount is zero, enter a zero (0).
Scenario
Amount Realized
Adjusted Basis
Gain Realized
Gain Recognized
Sec. 1245 Recapture
Sec. 1231 Gain
1.-6. Jim exchanged an old machine used in his trade or business for a new machine plus $50,000 cash. Jim purchased the old machine for $345,000 and deducted $45,000 of depreciation on the old machine. The new machine has a fair market value of $450,000.
7.-12. Jerry purchased a new machine for $100,000. A few years later, Jerry sold the machine for $90,000. Before selling the machine, Jerry claimed $40,000 in depreciation.
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