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Moab inc manufactures and distributes high tech biking gadgets

28/04/2021 Client: muhammad11 Deadline: 2 Day

oab, Inc. manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year.
Part (1) Determine the gain/loss realized and recognized in the current year for each of these events. Also determine whether the gain/loss recognized is §1231, capital, or ordinary.
a. Moab Inc. sold a machine that it used to make computerized gadgets for $27,300 cash. It originally bought the machine for $19,200 three years ago and has taken $8,000 depreciation.
b. Moab Inc. held stock in ABC Corp. which had a value of $12,000 at the beginning of the year. That same stock had a value of $15,230 at the end of the year.
c. Moab Inc. sold some of its inventory for $7,000 cash. This inventory had a basis of $5,000.
d. Moab Inc. disposed of an office building with a fair market value of $75,000 for another office building with a fair market value of $55,000 and $20,000 in cash. It originally bought the office building seven years ago for $62,000 and has taken $15,000 in depreciation.
e. Moab Inc. sold land it held for investment for $28,000. It originally bought the land for $32,000 two years ago.
f. Moab Inc. sold another machine for a note receivable in four annual installments of $12,000. The first payment was received in the current year. It originally bought the machine two years ago for $32,000 and had claimed $9,000 in depreciation expense against the machine.
g. Moab Inc. sold stock it held for eight years for $2,750. It originally purchased the stock for $2,100.
h. Moab Inc. sold another machine for $7,300. It originally purchased this machine six months ago for $9,000 and has claimed $830 in depreciation expense against the asset.
Part (2) From the recognized gains/losses determined in part 1, determine the net §1231 gain/loss and the net ordinary gain/loss Moab will recognize on its tax return. Moab, Inc. also has $2,000 of nonrecaptured §1231 losses from previous years.
Part (3) (Forms) Complete Moab, Inc.'s Form 4797 for the year.

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