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Required information

$[$The following information applies to the questions displayed below.$]$

On August $1$ of year $0,$ Dirksen purchased a machine for $$29,500$ to use in its business. On December $4$ of year $0,$ Dirksen

sold the machine for $$24,500.$ Use MACRS Table.

Note: 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 answers blank. Enter zero if

applicable.

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?