Jay sold three items of business equipment for a total of $300,000. None of the equipment was appraised to determine its value. Jay's cost and adjusted basis for the assets are shown below:

Asset	Cost		Adjusted Basis
Skidder	$230,000			$40,000
Driller	120,000			60,000
Platform	620,000			0
Total	$970,000			$100,000

Jay has been unable to establish the fair market values of the three assets. All he can determine is that combined they were worth $300,000 to the buyer in this arm's length transaction. How should Jay allocate the sales price and figure the gain or loss on the sale of the three assets?

If an amount is zero, enter "0".

a. First, Jay must consider that 1231 gain/ 1245 gain requires taxpayers to treat all gain as capital gain/ordinary income

unless the property is disposed of for more than was paid for it.

b. If Jay treats the assets as a single group, determine amount and nature of the gain or loss.

There is an overall gain/loss of $fill in the blank of which $fill in the blank is 1245

gain/loss.

c. If Jay allocates the $300,000 selling price to each asset based on its relative original cost, determine the gain or loss. In your computation, round any division to 6 decimal places. Then, round your final answer to the nearest whole dollar.

Asset	Allocated Sale Price		Adjusted Basis		Difference	Gain or Loss
Skidder	$fill in the blank		$40,000		$fill in the blank	1231 gain/ 1245 gain/ 1245 loss/No gain or loss
Driller	fill in the blank		60,000		fill in the blank	1231 gain/ 1245 gain/ 1245 loss/No gain or loss
Platform	fill in the blank		0		fill in the blank	1231 gain/ 1245 gain/ 1245 loss/No gain or loss
Total	$300,000		$100,000		$fill in the blank

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d. If Jay allocates the $300,000 selling price to each asset based on its relative adjusted basis, determine the gain or loss.

Asset	Allocated Sale Price		Adjusted Basis		Difference	Gain or Loss
Skidder	$fill in the blank		$40,000		$fill in the blank	1245 gain/ 1245 loss/No gain or loss/Part 1245 and 1231 gain
Driller	fill in the blank		60,000		fill in the blank	1231 gain only/ 1245 gain only/No gain or loss/Part 1245 and 1231 gain/Part 1245 and 1231 loss
Platform	fill in the blank		0		fill in the blank	1245 loss/ 1231 gain/No gain or loss/Part 1245 and 1231 gain
Total	$300,000		$100,000		$fill in the blank

.