Siena Industries (a sole proprietorship) sold three § 1231 assets during 2012. Data on these property dispositions are as follows:
|
Asset |
Cost |
Acquired |
Depreciation |
Sold for |
Sold on |
|
Rack |
$100,000 |
10/10/08 |
$62,000 |
$75,000 |
10/10/12 |
|
Forklift |
35,000 |
10/16/09 |
23,000 |
5,000 |
10/10/12 |
|
Bin |
87,000 |
03/12/11 |
34,000 |
60,000 |
10/10/12 |
a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset.
b. Assuming that Siena has no no recaptured net § 1231 losses from prior years, how much of the 2012 recognized gains is treated as capital gains?