Required information [The following information applies to the questions displayed below.] On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. 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.) b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead? (Round other intermediate computations to the nearest whole dollar amount.) Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) $1231 gain/(loss)
Required information [The following information applies to the questions displayed below.] On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. 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.) b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead? (Round other intermediate computations to the nearest whole dollar amount.) Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) $1231 gain/(loss)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen
sold the machine for $18,000. 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.)
b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or
loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead? (Round other intermediate
computations to the nearest whole dollar amount.)
Description
Amount
Total Gain/(Loss) Recognized
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)
$1231 gain/(loss)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8259aebc-30e3-493e-a55d-9d0094b873a5%2F146dee97-a852-4121-ab07-ec35d911da20%2Fhnkjnx5_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen
sold the machine for $18,000. 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.)
b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or
loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead? (Round other intermediate
computations to the nearest whole dollar amount.)
Description
Amount
Total Gain/(Loss) Recognized
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)
$1231 gain/(loss)
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