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Exercise 2-28 (LO. 2)Hummingbird Corporation, a closely held C corporation that is not a PSC, has $40,000 of net active income, $15,000 of portfolio income, and a $45,000 loss from a passive activity.Compute Hummingbird’s taxable income for the year. Exercise 2-27 (LO. 2)Aqua Corporation purchases nonresidential real property on May 9, 2012, for $1,000,000. Straight-line cost recovery is taken in the amount of $89,765 before the property is sold on November 30, 2015, for $1,500,000.a.Compute the amount of Aqua’s recognized gain on the sale of the realty. b.Determine the amount of the recognized gain that is treated as § 1231 gain and the amount that is treated as § 1250 recapture due to § 291.