Problem 3 (8 Points) VM Industries sold the following business assets during the current year: 1. Machinery: $30,000 cost; $8,000 accumulated depreciation; $25,000 sales price; 2. Automobile: $15,000 cost; $9,000 accumulated depreciation; $3,000 sales price; 3. Equipment: $20,000 cost; $4,000 accumulated depreciation; $25,000 sales price; 4. Building: $380,000 cost; $170,000 accumulated depreciation; $400,000 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). (4) (1) Machine (2) Auto Equipment (5) Building Proceeds Cost Basis - Accum. Deprec. Adjusted Tax Basis Total Gain (Loss) $1231 Gain (Loss) Ordinary $1245 Ordinary $1250 Ordinary $ 291 VM had $20,000 of nonrecaptured $1231 losses in the prior 5 years. How much capital gain (if any) does VM report after the $1231 netting process? How much ordinary gain (if any) does VM report on its tax return