Determine adjusted basis and current gain


Assignment Task: Asset Sale

Furniture purchased in 2020 per invoice #12 from Sticks and Pucks, Inc., was sold on July 29, 2022, for $15,000. The correct adjusted basis, current gain, and Section 1245 recapture are $13,118, $1,882, and $1,882 respectively.

Choose an option below: [Original text]

1. The correct adjusted basis, current gain, and Section 1245 recapture are $13,118, $1,882, and $1,882 respectively.

2 The correct adjusted basis, current gain, and Section 1245 recapture are $13,118, $1,882, and $0 respectively.

3. The correct adjusted basis, current gain, and Section 1245 recapture are $9,600, $5,400, and $5,400 respectively.

4. The correct adjusted basis, current gain, and Section 1245 recapture are $16,290, $0, and $0 respectively.

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Taxation: Determine adjusted basis and current gain
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