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  • Sales Price: Recovered Depreciation

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    jefpoy
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    The document shows the sale prices of a property over time and the corresponding capital gains or losses. It sold for $110,000 initially, then $100,000, $70,000, and finally $30,000. The initial purchase price was $110,000. At $100,000, depreciation of $62,000 was recovered and a $22,000 gain was realized. The book value was $48,000 when sold for $70,000, realizing a $22,000 gain. The final sale of $30,000 resulted in an $18,000 loss.

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    CAP BUD

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    The document shows the sale prices of a property over time and the corresponding capital gains or losses. It sold for $110,000 initially, then $100,000, $70,000, and finally $30,000. The initial purchase price was $110,000. At $100,000, depreciation of $62,000 was recovered and a $22,000 gain was realized. The book value was $48,000 when sold for $70,000, realizing a $22,000 gain. The final sale of $30,000 resulted in an $18,000 loss.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    2 views4 pages

    Sales Price: Recovered Depreciation

    Uploaded by

    jefpoy
    The document shows the sale prices of a property over time and the corresponding capital gains or losses. It sold for $110,000 initially, then $100,000, $70,000, and finally $30,000. The initial purchase price was $110,000. At $100,000, depreciation of $62,000 was recovered and a $22,000 gain was realized. The book value was $48,000 when sold for $70,000, realizing a $22,000 gain. The final sale of $30,000 resulted in an $18,000 loss.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    of 4

    SALES PRICE

    $110,000 $100,000 $70,000 $30,000

    CAPITAL GAIN
    INITIAL $110,000
    PURCHASE
    PRICE
    $100,000
    RECOVERED GAIN
    DEPRECIATION
    ($62,000)
    $70,000
    GAIN
    ($22,000)

    BOOK $48,000
    VALUE LOSS
    ($18,000)
    $30,000

    LOSS

    $0
    $2,000 $2,000 $2,000 $2,000

    $2,000 $2,000 $2,000 $2,000

    Cash Inflows

    1 2 3 4 5 6 7 8
    Cash Outflows

    End of YEAR

    $10,000
    $5,000 $5,000 $5,000 $5,000 $5,000
    $4,000 $6,000 $5,000 $5,000

    Cash Inflows 0
    5

    1 2 3 4 6 7 8
    Cash Outflows

    $10,000
    $8,000

    End of YEAR
    Sample problem of Calculating
    Initial Investment:

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