Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart ha
s a marginal tax rate of 32 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. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.) Required: a1. What is the amount and character of Hart’s recognized gain or loss if the asset is tangible personal property sold for $450,000? a2. Due to this sale, what tax effect does Hart have for the year?
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