90 julie sells her manufacturing plant and land originally purchased in 1980 acceler 4312902

90 julie sells her manufacturing plant and land originally purchased in 1980 acceler 4312902

90) Julie sells her manufacturing plant and land originally purchased in 1980. Accelerated depreciation had been taken on the building, but the building is now fully depreciated. Julie is in the 39.6% marginal tax bracket. Other information is as follows:

PropertyOriginal costTotal depreciationAdjusted basis              Selling price

Plant              $2,800,000              $2,800,000$0$3,000,000

Land              $   500,000$500,000$800,000

She has not sold any other assets this year.  A review of her file indicates that the only asset dispositions in the past five years was a truck sold for a $10,000 loss last year.  What are the tax consequences of the sale (type of gain; rates at which taxed)?

91) Connors Corporation sold a warehouse during the current year for $980,000. The building had been acquired in 1980 at a cost of $830,000. The building is fully depreciated.

What is the amount and nature of the gain or loss on the sale of the warehouse?

92) WAM Corporation sold a warehouse during the current year for $830,000. The building had been acquired in 1989 at a cost of $730,000 and had total straight-line depreciation of $510,000.

What is the amount and nature of the gain or loss on the sale of the warehouse?

93) Describe the tax treatment for a noncorporate taxpayer in the 39.6% marginal tax bracket who sells each of the first two assets for $500,000 and each of the second two assets for $750,000. Each asset was purchased in 2009 and is used in a trade or business. There are no other gains and losses and no nonrecaptured Section 1231 losses.

Original Basis              Adjusted Basis

Land$350,000$350,000

Equipment              $600,000$450,000

Equipment              $600,000$500,000

Building              $550,000              $450,000

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