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Zip Taxes
Zip Taxes, Tax Preparer
Category: Tax
Satisfied Customers: 156
Experience:  CTEC Licensed / Mgmt Experience with H & R Block... Self Employed since 1986 Experienced in all Scheds
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On February 5, 2010, Able, Inc. sold equipment used in its

Customer Question

On February 5, 2010, Able, Inc. sold equipment used in its business for $15,000. Able purchased the equipment on January 15, 2005 for $30,000 and has properly claimed $30,000 of depreciation deductions for tax purposes. As a result of this sale, Able will report:



a. A long-term capital gain of $15,000.

b. A §1231 gain of $15,000.

c. Ordinary income of $15,000.

d. A §1231 loss of $15,000.
Submitted: 5 years ago.
Category: Tax
Expert:  Zip Taxes replied 5 years ago.

Zip Taxes :

Thank you having the trust to answer your question. When answered to your satisfaction be sure to hit ACCEPT. TIPS are welcomed / good deeds come back

Zip Taxes :

oh darn, I missed that day in school

Zip Taxes :

B - recapture the depreciation with a gain of 15,000.00 §1231

Zip Taxes :

Let me know what you think

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