In year 0, Longworth Partnership purchased a machine for $58,250 to use in its business. In year
Question:
In year 0, Longworth Partnership purchased a machine for $58,250 to use in its business. In year 3, Longworth sold the machine for $37,900. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $25,200.
Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable.
a. What are the amount and character of the gain or loss Longworth will recognize on the sale?
Total Gain or (Loss) Recognized$
Character of Recognized Gain or (Loss)
Ordinary Gain or (Loss)
§1231 gain or (loss)
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 $68,250?
otal Gain or (Loss) Recognized$
Character of Recognized Gain or (Loss)
Ordinary Gain or (Loss)
§1231 gain or (loss)
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver