Basis | FMV | Gain | Tax | |
---|---|---|---|---|
Accounts Receivable | $0 | $1,000,000 | $1,000,000(1) | $396,000 |
Inventory | $1,000,000 | $2,000,000 | $1,000,000(1) | $396,000 |
Warehouse | $1,500,000 | $4,500,000 | $3,000,000(2) | $714,000 |
Land | $500,000 | $500,000 | $0 | $0 |
Good Will | $0 | $2,000,000 | $2,000,000(1) | $792,000 |
Total | $3,000,000 | $10,000,000 | $7,000,000 | $2,298,000 |
(1) indicates an asset whose gain is taxed as ordinary income (2) indicates an asset whose gain is taxed as a capital gain. |