In year 0, Javens Incorporated sold machinery with a fair market value of $490,000 to Chris. The machinery's orlginal basis was $386,120 and Javens's accumulated depreclation on the machinery was $59,000, so Its adjusted basls to Javens was $327,120. Chris pald Javens $49,000 Immediately (In year 0) and provided a note to Javens Indicating that Chris would pay Javens $73,500 a year for SIx years beginning In year 1.

a. What are the amount and character of the galn 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? (Do not round intermediate computations.)

Description Amount

Recognized Gain

Character of Recognized Gain:

Ordinary Gain $1231 gain

required B

Recognize game from year 1 through 6

in year o, Jovens Incorporated sold machinery with a fair market value of $190,000 to Chris. The machinery's original basis was $386,120 and Javent's accumulated depreciation on the machinery was $59,000, so its adjusted basis to Javent was $327120. Chris Dald Jovens $49,000 immediately in year) and provided a note to Jovens indicating that Chris would pay Javens $73,500 a year for six years beginning in year 1 o. What are the amount and character of the gain that Jovent will recognize in year ? b. What amount and character of the gain will Jovens recognize in years 1 through 6? Complete this question by entering your answers in the tabs below. upruired A Required B What are the amount and character of the gain that savons will recognize in year o? (Do not round Intermediate computations) Amount Description Recognized Gain Character of Recognized On Ordinary in $1231 gain Required B In year o, Javens Incorporated sold machinery with a fatr market value of $490,000 to Chrts. The machinery's original basis was $386,120 and Javens's accumulated depreciation on the machinery was $59,000, so its adjusted basis to Javens was $327120. Chris pald Javens $49,000 Immediately (in year ) and provided a note to Javens Indicating that Chris would pay Javens $73,500 a year for six years beginning in year 1. a. What are the amount and character of the gain that Javens will recognize in year o? b. What amount and character of the gain wili Javens recognize in years 1 through 6? Complete this question by entering your answers in the tabs below. Required A Required B What amount and character of the gain will Javens recognize in years 1 through 6? (Do not round intermediate computations.) Recognized gain from years 1 through o