In year 0, Longworth Partnership purchased a machine for $41,250 to use in its business. In year 3, Longworth sold the machine for $38,100. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $29,400. 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 Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) §1231 gain or (loss) Amount b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $47,500? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) §1231 gain or (loss) Amount c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $9,300? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) §1231 gain or (loss) Amount
In year 0, Longworth Partnership purchased a machine for $41,250 to use in its business. In year 3, Longworth sold the machine for $38,100. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $29,400. 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 Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) §1231 gain or (loss) Amount b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $47,500? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) §1231 gain or (loss) Amount c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $9,300? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) §1231 gain or (loss) Amount
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 7BCRQ
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Question
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Transcribed Image Text:In year 0, Longworth Partnership purchased a machine for $41,250 to use in its business. In year 3, Longworth sold the
machine for $38,100. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by
$29,400.
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
Total Gain or (Loss) Recognized
Character of Recognized Gain or (Loss):
Ordinary Gain or (Loss)
§1231 gain or (loss)
Amount
b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to
$47,500?
Description
Total Gain or (Loss) Recognized
Character of Recognized Gain or (Loss):
Ordinary Gain or (Loss)
§1231 gain or (loss)
Amount
c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to
$9,300?
Description
Total Gain or (Loss) Recognized
Character of Recognized Gain or (Loss):
Ordinary Gain or (Loss)
§1231 gain or (loss)
Amount
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