Umair sold some equipment he used in his business on August 29, 2021, that was originally purchased for $52,000 on November 21, 2019. The equipment was depreciated using the 7-year MACRS method for a total of $13,798. Assume there is no additional netting of gains and losses for this taxpayer.

Required:

1. Assume Umair sold the equipment for $37,000:
   1. What is the amount of realized gain or loss on the sale of the equipment?
   2. Is the nature of the gain or loss considered ordinary or long-term?
2. Assume Umair sold the equipment for $43,000:
   1. What is the amount of realized gain or loss on the sale of the equipment?
   2. Is the nature of the gain or loss considered ordinary or long-term?