1- Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $26,000 with an adjusted basis of $15,500 for $17,000. Later in the year, Lena sold another piece of equipment purchased two years ago with an adjusted basis of $8,200 for $5,500. What are the tax consequences of these tax transactions?

Lena has Selecta:

(capital gain, a capital loss, an ordinary gain, an ordinary loss) of $_______ from the sale of the first equipment.

Lena has Selecta:

( 1231 gain, a 1231 loss) of $_________ from the sale of the second equipment.

2- Jacob purchased business equipment for $56,000 in 2012 and has taken $35,000 of regular MACRS depreciation. Jacob sells the equipment in 2015 for $26,000. What is the amount and character of Jacobs gain or loss?

If an amount is zero, enter "0".

Jacob has 1245 gain of $__________ and 1231 gain of $___________

3- Renata Corporation purchased equipment in 2013 for $180,000 and has taken $83,000 of regular MACRS depreciation. Renata Corporation sells the equipment in 2015 for $110,000. What is the amount and character of Renatas gain or loss?

Renata Corporation has a Select: ( 1245 gain, 1231 gain, 1245 loss, 1231) loss of

$________ .