Required information [The following information applies to the questions displayed below.] On August 1 of year O, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year O, Dirksen sold the machine for $18,000. Use MACRS Table. (Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no answer blank. Enter zero if applicable.) a. What are the amount and character of the gain or loss Dirksen will recognize on the sale? Amount Description Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) $1231 gain/(loss) Required information [The following information applies to the questions displayed below.) Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Asset Computers Machinery Furniture Building Accumulated Original Cost Depreciation $ 6,000 $ 2,000 10,000 4,000 20,000 12,000 100,000 10,000 Gain/Loss $ (3,000) (2,000) 7,000 (1,000) Assuming Buckley's marginal ordinary income tax rate is 32 percent, answer the questions for the following alternative scenarios: b1. Assume that the amount realized increased so that the building was sold at a $6,000 gain instead. What is the amount and character of Buckley's gains or losses for the current year? b2. Calculate Buckley's tax liability or tax savings for the year