$(1)$

Required information

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

On August $1$ of year $0,$ Dirksen purchased a machine for $$23,750$ to use in its business. On December $4$ of year $0,$ Dirksen sold the machine for $$21,500.$ 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.

a$.$ What are the amount and character of the gain or loss Dirksen will recognize on the sale?

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