Umair sold some equipment he used in his business on August $29,2022,$ that was originally purchased for $$42,000$ on November $21,$

The equipment was depreciated using the seven$-$year MACRS method for a total of $$11,144.$ Assume there is no additional

netting of gains and losses for this taxpayer.

Required:

a$.$ Assume Umair sold the equipment for $$29,500$ :

What is the amount of realized gain or loss on the sale of the equipment?

Is the nature of the gain or loss considered ordinary or long$-$term?

b$.$ Assume Umair sold the equipment for $$33,000$ :

What is the amount of realized gain or loss on the sale of the equipment?

Is the nature of the gain or loss considered ordinary or long$-$term?