Required Information Problem 11-42 (LO 11-3, LO 11-4) (Algo) [The following information applies to the questions displayed below.] On August 1 of year O, Dirksen purchased a machine for $22,250 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,750. 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-b (Algo) b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 Instead? Answer is complete but not entirely correct. Description Amount Total Gain/(Loss) Recognized $ 3,500 Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) $ 3,500 1231 gain/(loss) $