Problem 3 (7 Points) Vandelay Industries sold the following business assets during the current year:

Machinery: $20,000 cost; $8,000 accumulated depreciation; $25,000 sales price;

Automobile: $15,000 cost; $10,000 accumulated depreciation; $8,000 sales price;

Computers: $25,000 cost; $18,000 accumulated depreciation; $3,000 sales price;

Building: $280,000 cost; $120,000 accumulated depreciation; $300,000 sales price.

In the table below, calculate the amount and character of the gain or loss related to the sale of each asset (before the 1231 netting process).

	(1) Machine	(2) Auto	(4) Computer	(5) Building
Proceeds
Cost Basis
- Accum. Deprec.
Adjusted Tax Basis
Total Gain (Loss)
1231 Gain (Loss)
Ordinary 1245
Ordinary 1250
Ordinary 291
Ordinary 1239

Vandelay had $15,000 of nonrecaptured 1231 losses in the prior 5 years. How much capital gain (if any) does Vandelay report after the 1231 netting process? How much ordinary gain (if any) does Vandelay report on its tax return?