DDF Corporation sold land it had used for parking and storage for 20 years for

$575,000. Its basis in the land was $68,000. It also sold some manufacturing equipment for $125,000 that it replaced with more modern equipment.The equipment sold had a basis of $760,000.

a. What is the amount and character of DDF’s gains or losses on these sales?

b. If DDF has no other property transactions, how is the net gain or loss treated?

AppendixLO1