On August 1 of year 0, Dirksen purchased a machine for $28,250 to use in its business. On December 4 of year 0, Dirksen sold the machine for $22,500. (Use MACRS Table.) (Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no answer blank. Enter zero if applicable.) https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/spilker_7e/table_1.jpg
a. What is the amount and character of the gain or loss Dirksen will recognize on the sale?
Total gain/(loss) recongized
Character of Recognized gain/(loss)
ordinary gain/(loss)
1231 gain/(loss)
b. What is the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead? Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Round other intermediate computations to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.
Total gain/(loss) recongized
Character of Recognized gain/(loss)
ordinary gain/(loss)
1231 gain/(loss)
On August 1 of year 0, Dirksen purchased a machine for $28,250 to use in its business. On December 4 of year 0, Dirksen sold the machine for $22,500. (Use MACRS Table.) (Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no answer blank. Enter zero if applicable.) https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/spilker_7e/table_1.jpg
a. What is the amount and character of the gain or loss Dirksen will recognize on the sale?
Total gain/(loss) recongized
Character of Recognized gain/(loss)
ordinary gain/(loss)
1231 gain/(loss)
b. What is the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead? Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Round other intermediate computations to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.
Total gain/(loss) recongized
Character of Recognized gain/(loss)
ordinary gain/(loss)
1231 gain/(loss)
Related questions
In year 0, Longworth Partnership purchased a machine for $41,250 to use in its business. In year 3, Longworth sold the machine for $38,100. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $29,400. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
a. What is the amount and character of the gain (loss) Longworth will recognize on the sale?
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b. What is the amount and character of the gain (loss) Longworth will recognize on the sale if the sale proceeds were increased to $47,500?
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c. What is the amount and character of the gain (loss) Longworth will recognize on the sale if the sale proceeds were decreased to $9,300?
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