On August 1 of year 0, BLANK purchased a machine for $33,000 to use in its business. On December 4 of year 0, BLANK sold the machine for $31,250. Use MACRS Table. (Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Round other intermediate computations to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

a. What is the amount and character of the gain or loss BLANK will recognize on the sale?

total gain/loss recognized=

character of recognized gain/loss:

ordinary gain/loss=

section 123 gain/loss=

b. What is the amount and character of the gain or loss BLANK will recognize on the sale if the machine is sold on January 15 of year 1 instead?

total gain/loss recognized=

character of recognized gain/loss:

ordinary gain/loss=

section 123 gain/loss=