In: Accounting
HMC sold equipment December 5, 2018 for $2,000. It originally purchased the equipment February 1, 2010 for $12,000. The equipment is fully depreciated for book and tax purposes. For tax purposes, the entire gain is recaptured as ordinary income under Section 1245.
Complete Tax forms 4562(Depreciation and Amortization) and 4797(Sale of business property) for the following transaction. Please include all supporting forms used in your calculation. The forms can be found on the IRS's website. I have no way of uploading them to chegg.