Required information [The following information applies to the questions displayed below.] 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 answer blank. Enter zero if applicable. 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 Amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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)
51231 gain or (loss)
Amount
Transcribed Image Text: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) 51231 gain or (loss) Amount
3
-1 of 2
ts
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Required information
[The following information applies to the questions displayed below.]
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 answer blank. Enter zero if
applicable.
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)
Check my work
Amount
Transcribed Image Text:3 -1 of 2 ts eBook Required information [The following information applies to the questions displayed below.] 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 answer blank. Enter zero if applicable. 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) Check my work Amount
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