Problem 14-72 (b) (LO. 7, 8, 9)

Goyo Industries (a sole proprietorship) sold three 1231 assets during 2020. Data on these property dispositions are as follows:

Asset	Cost	Acquired	Depreciation	Sold For	Sold On
Machine #1	$85,000	08/31/16	$32,000	$60,000	12/04/20
Machine #2	$30,000	11/17/17	$12,000	$15,000	12/04/20
Machine #3	$77,000	02/28/19	$28,000	$51,000	12/04/20

Determine the amount and the character of the recognized gain or loss from the disposition of each asset.

If an amount is zero, enter "O". Total Character of Amount of Amount of 1245 Recapture Balance of Asset Gain or Loss Gain or Loss Gain or Loss Machine Ordinary income $ #1 60,000 x 53,000 x $ 7,000 x Machine Ordinary income x #2 $ 15,000 x $ 18,000 x $ -3,000 Machine Ordinary income $ 51,000 x $ 49,000 x $ 2,000 x #3 Goyo has $ o x of ordinary income due to 1245 recapture and $ o x of 1231 loss. Assuming Goyo has no nonrecaptured net 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain. 0 Feedback Check My Work Section 1245 applies primarily to non-real-estate property such as machinery, trucks, and office furniture