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 b What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $45,000 Description Amount Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss) Ordinary Gain or (Loss) 1231 gain or (loss) 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 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 b What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $45,000

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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

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.

b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to

$45,000?

Description	Amount
Total Gain or (Loss) Recognized
Character of Recognized Gain or (Loss)
Ordinary Gain or (Loss)
1231 gain or (loss)

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 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. b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $45,000