41. In year 0, Longworth Partnership purchased a machine for

$40,000 to use in its business. In year 3, Longworth sold the machine for $35,000. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by

$22,000.

a. What is the amount and character of the gain or loss Longworth will recognize on the sale?

b. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $45,000?

c. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $15,000?