- 9 - 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:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011