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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

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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 productlve and efficient. Because of thits decision it has entered into several transactions during the year. a. Moab Incorporated sold a machine that it used to make computerized gadgets for $29,400 cash. It originally bought the machine for $20,600 three years ago and has taken $8,000 in depreciation. b. Moab incorporated held stock in ABC Corporation, which had a value of $19,000 at the beginning of the year. That same stock had a value of $22,230 at the end of the year. c. Moab incorporated sold some of its inventory for $8,400 cash. This inventory had a basis of $5,000. d. Moab incorporated disposed of an office building with a fair market value of $82,000 for another office building with a fair market value of $60,600 and $21,400 in cash. It originally bought the office building seven years ago for $69,000 and has taken $15,000 in depreclation. e. Moab incorporated sold some land held for investment for $42,000, It originally bought the land for $43,200 two years ago. f. Moab Incorporated sold another machine for a note payable in four annual installments of $15,500. The first payment was recelved in the current year. It originally bought the machine two years ago for $46,000 and has claimed $9,700 in depreciation expense against the machine. 9. Moab incorporated sold stock it held for elght years for $3,450. It originally purchased the stock for $2,450. h. Moab Incorporated sold another machine for $8,700. It originally purchased this machine six months ago for $9,700 and has claimed $830 in depreciation expense against the asset. Comprehensive Problem 11-71 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 gain/loss recognized will be 51231 , capital, or ordinary, 2. From the recognized gains/losses determined in part 1, determine the net $1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $3,400 of nonrecaptured net $1231 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 9 ain/loss recognized will be 51231 , capital, cordinary. Note: Do not round intermediate computations. Loss amounts should be indicated by a minus sign. From the recognized gains/losses determined in part 1, determine the net $1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $3,400 of nonrecaptured net 1231 losses from previous years. Note: Do not round intermediate computations. Loss amounts should be indicated by a minus sign

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