Mona Inc. makes and distributes bicycle accessories. To streamline its operations and to become leaner, it had the following transactions: It sold a machine that made some accessories for $54,600 cash. The machine originally cost $38,400 three years ago and has accumulated depreciation of $16,000. Mona Inc., owned stock of XYZ Corporation worth $24,000 at the beginning of the year and $30,460 at the end of the year. Mona sold some inventory for $14,000 with a cost of $10,000 during the year. Mona disposed of an office building with a fair market value of $150,000 for another office building of $110,000 and received $40,000 in cash. The sold building was purchased seven years ago for $124,000 and has been depreciated for $30,000. Land held for investment was sold for $56,000 with an original basis of $64,000 and no depreciation. Mona Inc. sold another machine on account in four installments notes of $24,000; the first payment was received in 2018. It purchased the machine two years earlier for $64,000 and has claimed $18,000 in depreciation on the machine. Stock originally purchased eight years ago for $4,200, was sold in 2018 for $5,500. Mona Inc. sold another machine for $14,600. The machine was purchased six months earlier for $18,000 and at the date of the sale had accumulated depreciation of $1,660. Requirements: Explain the character of gain/loss realized and recognized for each of the events in the 2018 tax year. Define Section 1231 of the Internal Revenue Code (IRC), capital gain/loss, and ordinary gain/loss. Classify each event as section1231, capital gain/loss, or ordinary income. Use provisions of the most recent tax law. From the determination made in part A, determine the net Section 1231 gain/loss and the net ordinary gain/loss to be included in its tax return. Note that Mona Inc. had a $4,000 non-recaptured net Section 1231 net losses from previous years. Using ProConnect or fillable forms, complete Mona Inc.s Form 4797. Use the most recent and most current form available. Convert it to a Word document from a PDF or embed your PDF into Word.