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Comprehensive Problem 11-71 (LO 11-1, LO 11-2, LO 11-3, LO 11-4, LO 11-5, LO 11-6) (Algo) The following information applies to the questions displayed below)

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Comprehensive Problem 11-71 (LO 11-1, LO 11-2, LO 11-3, LO 11-4, LO 11-5, LO 11-6) (Algo) The following information applies to the questions displayed below) Moab Incorporated manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more proclictive and efficient. Because of this decision it has entered into several transactions during the year. Moab Incorporated sold a machine that it used to make computerized gadgets for $29,100 cash. It originally bought the machine for $20,400 three years ago and has taken $8,000 in depreciation b. Moab Incorporated held stock in ABC Corporation, which had a value of $18,000 at the beginning of the year. That same stock had a value of $21230 at the end of the year c. Moab Incorporated sold some of its inventory for $8.200 cash. This inventory had a basis of $5,000. d. Moab Incorporated disposed of an office building with a fair market value of $81,000 for another office building with a for market value of $59,800 and $21,200 in cash. It originally bought the office building seven years ago for $68,000 and has taken $15,000 in depreciation e. Moab Incorporated sold some land held for investment for $40,000. It originally bought the land for $41,600 two years ago 1. Moab Incorporated sold another machine for a note payable in four annual installments of $15,000. The first payment was received in the current year. It originally bought the machine two years ago for $44,000 and has claimed $9,600 in depreciation expense against the machine, g. Moab Incorporated sold stock it held for eight years for $3,350. It originally purchased the stock for $2.400 h. Moab Incorporated sold another machine for $8,500. It originally purchased this machine six months ago for $9.600 and has claimed $830 in depreciation expense against the asset 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized is 51231 capital or ordinary 2. From the recognized gains/losses determined in part 1 determine the net $1231 goin/loss, the net ordinary gain/loss, and the net capital gainioss Moab will recognize on its tax return Moab Incorporated also has $3 200 of nonrecaptured net 51231 losses from previous years. Reg1 Reg2 Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized is $1231, capital, or ordinary. (Do not round Intermediate computations. Loss amounts should be indicated by a minus sign Asset Realized Gain Los) Recognized $1245 Ordinary $291 Ordinary Gain LOS) Income Income 51231 Gain Loss) Ordinary Income (Loss) Capital Galr|Loss) ta 1b 1c 1d te TF to th Total S 0 $ 0 $ Os D Os 0 $ $1231 gain $1231 loss Net $1231 gain Nonrecaptured $1231 losses Net $1231 gain es Ordinary Income: $1245 recapture $291 recapture Ordinary income Ordinary loss Ordinary income from $1231 netting Total Capital Gains and Losses: Capital gain Capital loss Net capital gain

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