Answer:
as per Section 1231 , gain = $2,004
as per Section 1245 here ordinary income = $3,855
Step-by-step explanation:
given data
Sale value = $14,853
Original cost = $12,849
Depreciation = $3,855
solution
we know that by provisions when sale value is more than original cost
than there excess amount will be treated as the section 1231 capital gain
and that gain up to depreciation amount will be treated as ordinary income under the section 1245
so here we get here first total profit that is
total profit = $14,853 - $12,849 - $3,855
total profit = $5,859
so as per Section 1231
gain = $14,853 - 12,849
gain = $2,004
and
as per Section 1245
here ordinary income = $3,855