How much is lexington depreciation recapture potential

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Reference no: EM131185771

"The Lexington partnership has a depreciable business asset (personal prop- erty) that it originally purchased for $60,000. The asset now has an adjusted basis of $36,000 and a market value of $70,000. The partnership has no other poten- tial hot assets. Ambroz sells his 25% interest in the partnership."

a. How much is Lexington’s depreciation recapture potential?

b. How much ordinary income does Ambroz recognize when he sells this partner-ship interest?

Reference no: EM131185771

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