In year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3, Longworth sold the machine for $35,000. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,000.

Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable.

a. What are the amount and character of the gain or loss Longworth will recognize on the sale?

Required information [The following information applies to the questions displayed below] In year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3, Longworth soid the machine for $35,000. Between the date of the purchase and the date of the sale, Longworth depreclated the machine by $22.000 Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. o. What are the amount and character of the gain or loss Longworth will recognize on the sale? Answer is complete but not entirely correct