Question

A couple of years ago, the company Health4All purchased land, a building, and two depreciable assets from another corporation. All of these have recently been disposed. Use the information shown to determine the presence and amount of any capital gain, capital loss, or depreciation recapture.

Asset	Purchase Price, $	Recovery Period, Years	Current Book Value, $	Sales Price, $
Land	–240,000	-	-	290,000
Building	–800,000	27.5	300,000	255,000
Asset 1	–50,500	3	15,500	20,500
Asset 2	–10,000	3	5,000	20,000

The capital gain (CG) amount for land is determined to be $ .

The capital loss (CL) amount for building is determined to be____ $ .

The depreciation recapture (DR) amount for asset 1 is determined to be____ $ .

The depreciation recapture (DR) amount for asset 2 is determined to be____ $ .

The capital gain (CG) amount for asset 2 is determined to be_____ $ .

Answer 1