Gaston Corporation distributes § 1245 property as a dividend to its shareholders. The property's fair market value is $970,400, and the adjusted basis is $921,880. In addition, the amount of the recapture potential is $92,188. What is the amount and character of Gaston's gain or loss?

$197,263.7

Explanation:

The current value can be found by use of the compound interest formula. Since the asset has been losing value at 6 % per year,

the interest rate will be -6%

The formula for compound interest is  FV = PV × (1+r)^n

in this case

FV= current value

PV= $237,500

r= -6% or -0.06%

n= 3 years

Fv= $237, 500 x ( 1 + (-0.06)^3

Fv=$237,500 x (0.94)^3

Fv= $237,500 x 0.830584

Fv= $197,263.7

The current value =$197,263.7