! cences Required information Problem 11-41 (LO 11-3, LO 11-4) (Algo) [The following information applies to the questions displayed below.) In year 0, Longworth Partnership purchased a machine for $56,250 to use in its business. In year 3, Longworth sold the machine for $43,300. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $24,700. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. Problem 11-41 Part-a (Algo) a. What are the amount and character of the gain or loss Longworth will recognize on the sale? Description Amount Total Gain or (Loss) Recognized $ 11,750 Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss)
! cences Required information Problem 11-41 (LO 11-3, LO 11-4) (Algo) [The following information applies to the questions displayed below.) In year 0, Longworth Partnership purchased a machine for $56,250 to use in its business. In year 3, Longworth sold the machine for $43,300. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $24,700. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. Problem 11-41 Part-a (Algo) a. What are the amount and character of the gain or loss Longworth will recognize on the sale? Description Amount Total Gain or (Loss) Recognized $ 11,750 Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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cences
Required information
Problem 11-41 (LO 11-3, LO 11-4) (Algo)
[The following information applies to the questions displayed below.)
In year 0, Longworth Partnership purchased a machine for $56,250 to use in its business. In year 3, Longworth sold the
machine for $43,300. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by
$24,700.
Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable.
Problem 11-41 Part-a (Algo)
a. What are the amount and character of the gain or loss Longworth will recognize on the sale?
Description
Amount
Total Gain or (Loss) Recognized
$
11,750
Character of Recognized Gain or (Loss):
Ordinary Gain or (Loss)
$1231 gain or (loss)
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