$1231 Asset with Depreciation - Tangible Personal Property subject to 1245 recapture 4&5. Teton sold machinery for $400,000. What is the amount and character of the gain Teton must recognize on the sale? The original basis was $710,000 and the accumulated depreciation was $450,000. 6&7. Let's assume the same facts as in the previous example, except that Teton sells the machinery for $860,000. What is the amount and character of the gain Teton would recognize on this sale? 8. Let's assume the same facts as in Example 11-6 and in Exhibit 11-2, except that Teton sells the machinery for $160,000. What is the amount and character of the gain or loss Teton would recognize on this sale