Jim,the Owner of a Sole Proprietorship,sold the Following Assets in 2017

Essay

Jim,the owner of a sole proprietorship,sold the following assets in 2017:
$\begin{array}{lrrrr}\text { Asset }&\text { Cost }&\text { Acquired }&\text { Depreciation }&\text { Sale Price }&\text { Sale Date }\\\text { Truck }&\$48,000&07/31/15&\$7,737&\$35,000&07/22/17\\\text { Trailer }&31,000&12/15/15&19,096&24,000&05/30/17\\\text { Land }&\$67,000&02/15/15&0&75,000&06/30/17\end{array}$ Complete the following table: and the character of the realized and recognized gain or loss from the sale of each asset.Assume the land was held for investment and had a FMV of $73,000.
$\begin{array}{lllccc}&&&&\text { Amount }&\text { The gain (loss) }\\&&&\text { Section }&\text { subject to }&\text { is considered }\\&&&1231 \text { or }&\text { Section }&\text { to be ordinary }\\& \text { Adjusted} & \text {Gain (Loss) } & 1245 & 1245 & \text { capital for tax } \\\text { Asset } & \text { Basis } & \text { Recognized } & \text { Asset } & \text { Recapture }&\text { purposes } \\\hline\end{array}$