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On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold
On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. A. What is the amount and character of the gain or loss Dirksen will recognize on the sale? Total gain/loss recognized ____ Character of Recognized gain/loss ordinary gain/loss ______ 1231gain/loss _______ B. What is the amount of character of the gain or loss Dirksen will recognize on the sale if the machine was sold on January 15 of year 1 instead
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