Hauswirth Corporation sold (or exchanged) some manufacturing equipment in year 0. Hauswirth bought the machinery several years ago for $114,000 and it has claimed $24,200 of depreciation expense against the equipment.

a.

Assuming that Hauswirth receives $107,500 in cash for the equipment, compute the amount and character of Hauswirths recognized gain or loss on the sale. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)

Recognized Gain/(Loss)
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)
1231 gain/(loss)

b.

Assuming that Hauswirth receives like-kind equipment with a fair market value of $107,500 in exchange for its equipment, compute Hauswirths gain realized, gain recognized, deferred gain, and basis in the new equipment. (Leave no answer blank. Enter zero if applicable.)

Gain realized
Gain recognized
Deferred gain
Adjusted basis in new property

c.

Assuming that Hauswirth receives $39,000 in cash in year 0 and a $76,000 note receivable that is payable in year 1, compute the amount and character of Hauswirths gain in year 0 and in year 1.(Round "Gross Profit Percentage" to 3 decimal places. Round your final answers to the nearest whole dollar amount.)

Description	Amount		Character
Amount Realized	$39,000
Original Basis	$76,000
Accumulated Depreciation	$24,200
Adjusted Basis
Gain (Loss) Realized
Depreciation Recapture
Gain Eligible for Installment Reporting
Gross Profit Percentage		%
Installment Gain (Loss) in year 0
Installment Gain (Loss) in year 1