Assignemnt
In year 0, Longworth Partnership purchased a machine for $53,500 to use in its business. In year 3, Longworth sold the machine for $40,700. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,500.
a. What amount of gain (loss) is recognized on the sale?
Total Gain/(Loss) Recognized:
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss):
1231 Gain/(Loss):
b. What amount of gain (loss) is recognized on the sale if the sale proceeds were increased to $66,500?
Total Gain/(Loss) Recognized:
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss):
1231 Gain/(Loss):
c. What amount of gain (loss) is recognized on the sale if the sale proceeds were decreased to $23,600?
Total Gain/(Loss) Recognized:
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss):
1231 Gain/(Loss):