Required information Problem 11-40 (LO 11-3, LO 11-4) (Static) (The following Information applies to the questions displayed below.] In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Problem 11-40 Part-a (Static) a. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a partnership? Description Total Gain/(Loss) Recognized Character of Recognized Gain(Loss) Ordinary Gain/(Loss) $1231 gain/(loss) Amount $ 42,000 $ 18,000 $ 0 04 Required information Problem 11-40 (LO 11-3, LO 11-4) (Static) (The following information applies to the questions displayed below.] In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Problem 11-40 Part-b (Static) b. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation? Description Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Amount $ 42,000 Ordinary Gain/(Loss) $1231 gain/(loss) S 18,000 $ 0 Required information Problem 11-40 (LO 11-3, LO 11-4) (Static) [The following information applies to the questions displayed below.] In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Problem 11-40 Part-c (Static) c. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were increased to $60,000? Description Amount Total Gain(Loss) Recognized $ 60,000 Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) $ 36,000 $1231 gain/(loss) $ 4,000 Required information: Problem 11-40 (LO 11-3, LO 11-4) (Static) [The following information applies to the questions displayed below.] In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Problem 11-40 Part-d (Static) d. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were decreased to $20,000? Description Amount Total Gain/(Loss) Recognized $ 20,000 Character of Recognized Gain/(Loss): Ordinary Gair/(Loss) $ 4,000 $1231 gain/(loss) $ 5,000