Moab sold a machine to make computerized gadgets for $30,600 cash. It originally bought the machine for $21,400 three years ago and has taken $8,000 in depreciation.

Moab held stock in ABC, 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 year.

Moab sold some of its inventory for $9,200 cash. This inventory had a basis of $5,000.

Moab disposed of an office building with a fair market value of $86,000 for another office building with a fair 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.

Moab sold some land held for investment for $43,000. It originally bought the land for $47,400 two years ago.

Moab sold another machine for a note payable in four annual installments of $17,500. The first payment was received in the current year. It originally bought the machine two years ago for $54,000 and has claimed $10,100 in depreciation expense against the machine.

Moab sold stock it held for eight years for $3,850. It originally purchased the stock for $2,650.

Moab sold another machine for $9,500. It originally purchased this machine six months ago for $10,200 and has claimed $530 in depreciation expense against the asset.

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.

Asset	Realized Gain or (Loss)	Recognized Gain or (Loss)	1245 Ordinary Income	291 Ordinary Income	1231 Gain or (Loss)	Ordinary Income or (Loss)	Capital Gain or (Loss)
1a	$1,200						$1,200
1b	0	0	0	0	0	0	0
1c
1d	28,000
1e
1f
1g
1h
Totals	$29,200	$0	$0	$0	$0	$0	$1,200

From 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 also has $4,200 of nonrecaptured net 1231 losses from previous years.

1231 Netting Process:
1231 gain
1231 loss	$1,800
Net 1231 gain
Nonrecaptured 1231 losses
Net 1231 gain
Ordinary Income:
1245 recapture
291 recapture	$3,000
Ordinary income
Ordinary loss
Ordinary income from 1231 netting
Total
Capital Gains and Losses:
Capital loss
Net capital gain