Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 30 percent.
Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other than those described in the problem): (Loss amounts should be indicated by a minus sign.)
1.What is the amount and character of Hart's recognized gain if the asset is tangible personal property sold for $450,000? (Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.)