Bill, a calendar-year taxpayer, purchased a machine for $150,200. Assume he properly deducted $30,040 of depreciation deductions. Compute his gain or loss and determine the character of his gain or loss on the sale in each independent situation. (Note: John had no other asset sales in the current year).

(a) The machine was held for 13 months and then sold for: (1) $102,560 (2) $200,110 (3) $157,100 (4) $61,495

(b) The machine was held for eleven months and then sold