How to calculate hawkeye adjusted basis in farming equipment

Reference no: EM13906451

1. Hawkeye sold farming equipment for $55,000. It bought the equipment four years ago for $75,000, and it has since claimed a total of $42,000 in depreciation deductions against the asset. Explain how to calculate Hawkeye's adjusted basis in the farming equipment.

2. When a taxpayer sells an asset, what is the difference between realized and recognized gain or loss on the sale?

Reference no: EM13906451

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