On August 1 of year 0, Dirksen purchased a machine for $29,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $27,750. (Use MACRS Table.) (Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no answer blank. Enter zero if applicable.)
a. What is the amount and character of the gain or loss Dirksen will recognize on the sale?
Description Amount
Total Gain/Loss Recognized
Character of Recognized Gain/Loss:
Ordinary Gain/Loss
§1231 gain/(loss)
b. What is the amount and character of the gain or loss Dirksen will recognize on the sale if the machine was sold on January 15 of year 1 instead?
Description Amount
Total Gain/Loss Recognized
Character of Recognized Gain/Loss:
Ordinary Gain/Loss
§1231 gain/(loss)
