In year $0,$ Javens Incorporated sold machinery with a fair market value of $$450,000$ to Chris. The machinery's original basis was $$355,500$ and Javens's accumulated depreciation on the machinery was $$55,000,$ so its adjusted basis to Javens was $$300,500.$ Chris paid Javens $$45,000$ immediately $($in year $0)$ and provided a note to Javens indicating that Chris would pay Javens $$67,500$ a year for six years beginning in year $1.$

Required:

a$.$ What are the amount and character of the gain that Javens will recognize in year $0?$

b$.$ What amount and character of the gain will Javens recognize in years $1$ through $6?$

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

What are the amount and character of the gain that Javens will recognize in year $0?$

Note: Do not round intermediate computations.

$\backslash$table$[[$Description$,$Amount$],[$Recognized Gain,$$,149,500$