In year 0, Longworth Partnership purchased a machine for $46,250 to use in its business. In year 3, Longworth sold the machine for $34,700. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $25,700.

a, What is the amount and character of the gain (loss) Longworth will recognize on the sale?

Total Gain/Loss recognized________

Character of recognized gain:

Ordinary Gain/loss________

1231 Gain/loss_________

b. What is the amount and character of the gain (loss) Longworth will recognize on the sale if the sale proceeds were increased to $60,500?

Total Gain/Loss recognized________

Character of recognized gain:

Ordinary Gain/loss________

1231 Gain/loss_________

c. What is the amount and character of the gain (loss) Longworth will recognize on the sale if the sale proceeds were decreased to $19,500?

Total Gain/Loss recognized________

Character of recognized gain:

Ordinary Gain/loss________

1231 Gain/loss_________