You have always loved ABC Corp. and its wonderful products and so have been an investor in its stock for a good while. In fact, whenever you could you added to your stockholdings in ABC, as follows: 11/2016 100 shares at $18 per share (initial purchase) 04/2017 100 shares at $22 per share 12/2018 100 shares at $24 per share 06/2019 100 shares at $25 per share 05/2020 100 shares at $29 per share Needing cash for a down payment on your dream home, today you sold 250 shares at $40 per share. But, distracted by the wonderful new home that youre about to make your own, you completely forgot to instruct your online broker exactly which 250 shares you were wanting to sell What is the amount and character of your gain on todays sale? Four years ago you bought a widget-making machine for your Schedule C wid-get-making business for $10,000,000. Here are some additional facts: Weirdly, pandemic-related supply chain disruptions have resulted in the value of your machine actually increasing despite its accumulated wear and tear as of today its FMV is exactly $12,900,000. The reason why you know beyond a shadow of a doubt that the machines FMV is that amount is because you just sold it today in an arms-length transaction for that very price. After all of the delightful MACRS depreciation deductions that you will have claimed (including for this year) with respect to the machines original cost, your adjusted basis in the machine immediately prior to todays sale was precisely $3,800,000. What amount and character of gain will you be reporting on your 2021 tax return with respect to todays sale?