ch. 7

#34

Required information [The following information applies to the questions displayed below.] In year 0. Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3, Longworth sold the machine for $35,000. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What is the amount and character of the gain (loss) Longworth will recognize on the sale? Amount Description Total Gain/(Loss) Recognized Character of Recognized Gain (Loss) Ordinary Gain/(Loss) $1231 gain/(loss)