Zoe Ann a $70,000 FMV for all 100 shares of Zeema Corporation's stock. $4,000. What is transfers Before the transfer, Zoe Ann used the machinery in her Zeema's gain on business. She originally paid $50,000 for the machinery and the machine having claimed $14,000 of depreciation before transferring the an and what is its a $36,000 machinery. Zoe Ann recaptures no depreciation on the transfer character? adjusted and the recapture potential is transferred to Zeema Corporation. basis and Zeema sells the machine for $66,000 after it had depreciated the
Zoe Ann transfers having a $36,000 adjusted basis and a $70,000 FMV for all 100 shares of Zeema Corporation's stock. Before the transfer, Zoe Ann used the machinery in her business. She originally paid $50,000 for the machinery and claimed $14,000 of depreciation before transferring the machinery. Zoe Ann recaptures no depreciation on the transfer and the recapture potential is transferred to Zeema Corporation. Zeema sells the machine for $66,000 after it had depreciated the an $4,000. What is Zeema's gain on the machine and what is its character?
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