In year 0, Longworth Partnership purchased a machine for $53,250 to use in its business. In year 3, Longworth sold the machine for $44,900. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $31,200. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)

12.

value: 0.52 points

Required information

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 / loss _____

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 $62,750?

Total Gain / Loss Recognized _______

Character of recognized gain / loss _____

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 $15,600?

Total Gain / Loss Recognized _______

Character of recognized gain / loss _____

Ordinary Gain / Loss ______

1231 gain / loss ______