Benlow Company, a calendar year taxpayer, sold two operating assets this year. The first sale generated a $19,200 Section 1231 loss, and the second sale generated a $33,600 Section 1231 gain. As a result of these sales, Benlow should recognize:

Respuesta :

As a result of these sales, Benlow should recognize: $14,400 gain treated as capital gain.

Capital gain

Using this formula

Capital gain= Second sale  amount generated-  First sale amount  generated

Let plug in the formula

Gain/loss= $33,600- $19,200

Gain/loss=$14,400 capital gain

Therefore as a result of these sales, Benlow should recognize: $14,400 gain treated as capital gain.

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