On August 1 of year 0, Dirksen purchased a machine for $29,250 to use in its business. On December 4 of year 0, Dirksen sold the machine for $23,750. 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.)

Problem 11-42 Part-a (Algo)

a. What are 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) =

1231 Gain / (Loss) =