In year 0, Longworth Partnership purchased a machine for $53,500 to use in its business. In year 3, Longworth sold the machine for $40,700. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,500.

a.	What amount of gain (loss) is recognized on the sale? Total Gain/(Loss) Recognized: Character of Recognized Gain/(Loss): Ordinary Gain/(Loss): 1231 Gain/(Loss):

b.	What amount of gain (loss) is recognized on the sale if the sale proceeds were increased to $66,500? Total Gain/(Loss) Recognized: Character of Recognized Gain/(Loss): Ordinary Gain/(Loss): 1231 Gain/(Loss):

c.	What amount of gain (loss) is recognized on the sale if the sale proceeds were decreased to $23,600? Total Gain/(Loss) Recognized: Character of Recognized Gain/(Loss): Ordinary Gain/(Loss): 1231 Gain/(Loss):