Cooper Construction Company sells a used crane to Alpha Construction for $$94,000.$ The crane, which originally cost $$880,000,$ is fully depreciated. Under

Sec. $1245$ depreciation recapture rules, the entire gain is taxable as ordinary income. Cooper receives a down payment of $$49,000$ and is to receive $$15,000$

per year for three additional years plus interest of $10\%,$ which is greater than the applicable federal rate.

Read the requirements.

Requirement a$.$ Compute the gain from the sale.

The gain from the sale is

Requirement b$.$ How much gain is taxable in the year of the sale?

The taxable amount of the gain in the year of the sale is

Requirement c$.$ What income does Cooper report in each of the next three years?

The income that Cooper Construction Company needs to report in each of the next three years is