Moab incorporated manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. a. Moab Incorporated sold a machine that it used to make computerized gadgets for $30,600 cash it originaliy bought the machine for $21,400 three years ago and has taken $8,000 in depreciation. b. Moab incorporated held stock in ABC Corporation, which had a value of $23,000 at the beginning of the year. That same stock had a value of $26,230 at the end of the yeat. c. Moab incorporated sold some of its inventory for $9,200 cash. This inventory had a basis of $5,000 d. Moab.incorporated disposed of an office building with a fair market value of $86,000 for another office building with a falt market value of $63,800 and $22.200 in cash. It originally bought the office building seven years ago for $73,000 and has taken $15,000 in depreciation e. Moab incorporated sold some land held for investment for $43,000 it originally bought the land for $47.400 fwo years ago 1. Moab tincorporated soid another machine for a note payable in four annual installments of $17500. The first payment was recelved in the current year it originally bought the machine two years ago for $54.000 and has clamed 510/00 in depreciation expense against the machine. 9. Moab incoiporated sold stock it held fot eignt years for $3.850. If originally purchased the stock for $2.650 h. Moab incorporated sold another machine for $9.500. It originally purchased this machine six months ago for $10200 and has claimed $530 in depreciation expense against the asset. Comprehensive Problem 3-71 Part (1) and (2) (Algo) Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above Also determine whether the gainjoss recognized will be 51231 , capital, or ordinary. 2. From the recognized gainsfosses determined in part 1, determine the net $1231 gainiloss, the net ordinaty gain/loss, and the net capital gaindoss Moab will recognize on its tax retuin. Moab Incorporated also has $4,200 of nonrecaptured net 51231 losses from previous years. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be 1231, capital, or ordinary. Note: Do not round intermediate computations. Loss amounts should be indicated by a minus sign. \begin{tabular}{|l|l|} \hline$1231 Netting Process: & \\ \hline$1231 gain & \\ \hline$1231 loss & \\ \hline Net $1231 gain \\ \hline Nonrecaptured 1231 losses \\ \hline Net $1231 gain \\ \hline Ordinary Income: \\ \hline \$1245 recapture \\ \hline \$291 recapture \\ \hline Ordinary income & \\ \hline Ordinary loss & \\ \hline Ordinary income from $1231 netting & \\ \hline Total \\ \hline Capital Gains and Losses: \\ \hline Capital gain \\ \hline Capital loss \\ \hline Net capital gain & \\ \hline \end{tabular} Moab incorporated manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. a. Moab Incorporated sold a machine that it used to make computerized gadgets for $30,600 cash it originaliy bought the machine for $21,400 three years ago and has taken $8,000 in depreciation. b. Moab incorporated held stock in ABC Corporation, which had a value of $23,000 at the beginning of the year. That same stock had a value of $26,230 at the end of the yeat. c. Moab incorporated sold some of its inventory for $9,200 cash. This inventory had a basis of $5,000 d. Moab.incorporated disposed of an office building with a fair market value of $86,000 for another office building with a falt market value of $63,800 and $22.200 in cash. It originally bought the office building seven years ago for $73,000 and has taken $15,000 in depreciation e. Moab incorporated sold some land held for investment for $43,000 it originally bought the land for $47.400 fwo years ago 1. Moab tincorporated soid another machine for a note payable in four annual installments of $17500. The first payment was recelved in the current year it originally bought the machine two years ago for $54.000 and has clamed 510/00 in depreciation expense against the machine. 9. Moab incoiporated sold stock it held fot eignt years for $3.850. If originally purchased the stock for $2.650 h. Moab incorporated sold another machine for $9.500. It originally purchased this machine six months ago for $10200 and has claimed $530 in depreciation expense against the asset. Comprehensive Problem 3-71 Part (1) and (2) (Algo) Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above Also determine whether the gainjoss recognized will be 51231 , capital, or ordinary. 2. From the recognized gainsfosses determined in part 1, determine the net $1231 gainiloss, the net ordinaty gain/loss, and the net capital gaindoss Moab will recognize on its tax retuin. Moab Incorporated also has $4,200 of nonrecaptured net 51231 losses from previous years. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be 1231, capital, or ordinary. Note: Do not round intermediate computations. Loss amounts should be indicated by a minus sign. \begin{tabular}{|l|l|} \hline$1231 Netting Process: & \\ \hline$1231 gain & \\ \hline$1231 loss & \\ \hline Net $1231 gain \\ \hline Nonrecaptured 1231 losses \\ \hline Net $1231 gain \\ \hline Ordinary Income: \\ \hline \$1245 recapture \\ \hline \$291 recapture \\ \hline Ordinary income & \\ \hline Ordinary loss & \\ \hline Ordinary income from $1231 netting & \\ \hline Total \\ \hline Capital Gains and Losses: \\ \hline Capital gain \\ \hline Capital loss \\ \hline Net capital gain & \\ \hline \end{tabular}