Treated as ordinary income
Question # 00767844
Posted By:
Updated on: 06/26/2020 08:47 AM Due on: 07/10/2020
Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6
1) Assuming Bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?
2) Assuming Bourne’s nonrecaptured net §1231 losses from years 1–5 were $200,000, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?
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Rating:
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