The Lexington Partnership has a depreciable business asset (personal property) that it originally purchased for $81,800. The asset now has an adjusted basis of $49,080 and a market value of $98,160. The partnership has no other potential hot assets. Ambroz sells his 25% interest in the partnership. a. How much is Lexington's depreciation recapture potential

Question b: How much ordinary income does Ambroz recognize when he sells this partnership interest?

a. Since the market value is more than its original cost, therefore, the completed depreciation can be potentially recaptured

Lexington's depreciation recapture potential = $81,800 - $49,080

Lexington's depreciation recapture potential = $32,720

b. Ambroz recognizes Ordinary income of: $32,720*25% = $8180

answer; i believe the answer is 40,600,000;

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.