$18$

Required information

Problem $11-42($LO $11-3,$ LO $11-4)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

$\backslash$table$[[$On August $1$ of year $0,$ Dirksen purchased a machine for $$26,250$ to use in its business. On December $4$ of year $0,$ Dirksen$],[$sold the machine for $$22,250.$ Use MACRS Table.$],[$Note: 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 answers blank. Enter zero if$],[$applicable$.]]$

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Problem $11-42$ Part$-$b $($Algo$)$

b$.$ Dirksen depreciated the machinery using MACRS $($seven$-$year recovery period$).$ What are 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?

$\backslash$table$[[$Description$,$Amount$],[$Total Gain or $($Loss$)$ Recognized,$],[$Character of Recognized Gain or $($Loss$)$:$,],[$Ordinary Gain or $($Loss$),],[$$$1231$ gain or $($loss$),$$