Long Corporation has been unprofitable for several years and has substantial NOL carryovers. Therefore, the company has elected to use straightline MACRS for property acquisitions. Long acquires, holds, or sells the following assets in 2016:

Long did not make the Sec. 179 election in any year, and elects out of bonus depreciation.
a. What is the depreciation deduction for each asset in 2016?
b. What amount of gain or loss does Long recognize on the properties sold in 2016?

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Original Cost Depre- Recovery Selling ciation Period (Years) Date Date Sold Price Acquired Method Basis 6/1/16 SL ADS Equipment $40,000 7 Light duty truck 5/1/12 (Nonpersonal-use) $ 8,000 SL ADS 12/1/16 30,000 5 10,000 12,000 SL ADS SL ADS Furniture 3/1/12 7/1/13 Automobile 12/1/16 10,000