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Business, 08.04.2020 00:15 2019jonathanbradford

This year, Zeron Company generated $87,200 income from the performance of services for its clients. It also sold several assets during the year. Compute Zeron’s taxable income under each of the following alternative assumptions about the tax consequences of the asset sales. a. Zeron recognized $1,000 recaptured ordinary income, a $2,400 net Section 1231 gain, and a $7,000 capital loss.

b. Zeron recognized a $6,600 net Section 1231 loss and a $1,700 capital loss.

c. Zeron recognized $3,900 recaptured ordinary income, a $1,510 net Section 1231 gain, and a $1,200 capital gain.

d. Zeron recognized a $10,300 net Section 1231 loss and a $4,000 capital gain.

e. Zeron recognized a $2,800 net Section 1231 gain, a $5,200 capital gain, and a

$6,300 capital loss.

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