1.ABC Had the following transactions in 2019:
Sold Machinery bought in 2013 that had a historical cost of $20,000 and Accumulated Depreciation of $18,000 for $30,000 cash
Had a §1231 loss of $5,000 in 2013
Had a §1231 Gain of $10,000 in 2014
Had a §1231 Gain of $20,000 in 2015
Had a §1231 loss of $12,000 in 2016
Had a §1231 Gain of $5,000 in 2017
Had a §1231 Gain of $3,000 in 2018
What is the amount and character of the gain on the sale of this asset in 2019?
$28,000 Long Term Capital Gain
$18,000 ordinary gain and $10,000 Long Term Capital Gain
$6,000 Long Term Capital Gain and $22,000 ordinary gain
$28,000 ordinary gain
$4,000 ordinary gain and $24,000 Long Term Capital Gain
2.
During the year 2019 Marvin had the following capital gains and losses
10,000 short term capital gains
5,000 short term capital losses
20,000 long term capital gains
18,000 long term capital losses
Assuming he is in the 37% tax bracket, how much tax will he pay on these ganis and losses
$1,400
None
$2,250
$2,590
