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Gross sale price $158,890
Less:
Cost or other basis
plus expense of sale $33,245
Less depreciation 13,760
Adjusted basis 19,485
Total gain from sale of property 139,405
Less:
Ordinary gain (depreciation claimed
on section 1245 property) 13,760
Capital gain 125,645
Form 8594, Asset Acquisition Statement, filed with the 1992
return showed the allocation of the total $158,890 sale price as
follows:
Aggregate fair Allocation of
Assets market value sale price
Class I (Cash) $2,000 $2,000
Class II -- --
Class III 184,251 156,890
Total 186,251 158,890
Form 8594 also showed a breakdown of the intangible amortizable
class III assets as follows:
Allocation of
Assets Fair market value sale price
Employment
agreements $20,000 $16,372
Customer list 155,000 130,978
Noncompete 1,200 1,489
Total 176,200 148,839
Thus, $8,051 of the class III assets is not classified on the
Form 8594.
Schedule L, Balance Sheet, filed with the 1992 return
reflected the following assets, liabilities, and stockholders’
equity at the beginning and end of that year:
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Last modified: May 25, 2011