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William sold Section 1245 property for $25,000 in 2012. The property cost $35,000 when it was purchased five-years ago. The depreciation claimed on the property was $16,000. For all parts, show your math:
(a) Compute the adjusted basis of the property.
(b) Analyze the recomputed basis of the property.
(c) Compute the amount of ordinary income under Section 1245.
(d) Estimate the Section 1231 gain.
How do I calculate these?
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