Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 20-Year 3.750% Year 1 Year 2 7.219 Year 3 14.81 19.20 17.49 14.40 8.55 6.677 Year 4 7.41 11.52 12.49 11.52 7.70 6.177 11.52 8.93 9.22 6.93 5.713 Year 5 Year 6 5.76 8.92 7.37 6.23 5.285 Year 7 8.93 6.55 5.90 4.888 4.46 6.55 5.90 4.522 Year 8 Year 9 Year 10 6.56 5.91 4.462 6.55 5.90 4.461 Year 11 3.28 5.91 4.462 Year 12 5.90 4.461 Year 13 5.91 4.462 Year 14 5.90 4.461 5.91 4.462 2.95 4.461 4.462 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 4.461 4.462 4.461 Year 21 2.231 ! 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 0, Dirksen purchased a machine for $21,250 to use in its business. On December 4 of year 0, Dirksen sold the machine for $17,000. 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 of the machine is sold on January 15 of year 1 Instead? Answer is complete but not entirely correct. Amount S 5,639 X Description Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) $1231 gain/(loss) S (5,640) 0 S