1.Assume the same faces as in Problem 1:13-47 except the
taxpa yer is a corporation and answer the same questions.
2. Secs. 1231, 1245, and Unrecaptured Sec. 1250. Brigham is
single and is in the 32% marginal income tax bracket. He has the sales or
exchanges below. Ac the beginning of the year, he has nonrecaptured net Sec.
1231 losses of $10,000. Determine the increase or decrease in Brigham’s tax
liability as a result of the following independent sales or exchanges.
a. Sells equipment used in his trade or business for
$40,000. The equipment was purchased for $100,000 and depreciation allowed
amounts to $72,000.
b. Sells land used in his trade or business for $80,000. The
land was purchased four years ago for $61,000.
c. He sells a building used in his trade or business for
$163,000. The building was purchased in 1997 for $250,000 and depreciation
allowed amounts to $110,000. d. Same as Part c except he sells the building for
$127,000.
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