The company purchased the following items for use solely in the business during 2014: a new truck (weighing over 6,000 pounds) bought on June 21 that cost $21,250; a new computer system bought on August 17 costing $3,200; additional new office furniture bought on December 4 costing $2,500.
At the beginning of 2014, the company owned the following items that were all purchased the month the company began business. In that year, the company did not elect bonus depreciation or Section 179 expensing for any of its truck, equipment, or furniture purchases:
Asset Cost basis
Trucks $78,000
Plumbing equipment (7 year property) 23,000
Office furniture 16,000
Computer system 4,000
On March 12, 2014, it sold one of its old trucks for $6,000 that had originally cost $17,000. It also was able to sell its old computer system on September 12, 2014 for $250. It donated two pieces of its old office furniture to Goodwill Industries. This furniture had cost $1,500 and had a current value of $600.
Additional Requirements
Other Requirements: I need help on what to do with the assets. is there a gain or a loss on the assets sold? Also, can the purchased assets for the 2014 be expensed because of section 179? how can I document the gain or loss on form 4797