Exercise 8-6 (Algorithmic) (LO. 6,7) Renata Corporation purchased equipment in 2018 for $210,600 and has taken $94,770 of regular MACRS depreciation. Renata Corporation sells the equipment in 2020 for $126,360. What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of $ of which $ is treated as ordinary income due to 1245 recapture Feedback Check My Work The Code contains two major recapture provisions- 1245 and 1250. These provisions cause gain to be treated initially as ordinary (income). Thus, what may appear to be a 1231 gain is ordinary gain instead. These recapture provisions may also cause a gain on a nonpersonal use casualty to be initially ordinary gain rather than casualty gain