Required information [The following information applies to the questions displayed below.] On August 1 of year 0, Dirksen purchased a machine for $29,750 to use in its business. On December 4 of year 0, Dirksen sold the machine for $24,750. Use MACRS Table. Note: Loss amounts should be indicated by a minus
Required information [The following information applies to the questions displayed below.] On August 1 of year 0, Dirksen purchased a machine for $29,750 to use in its business. On December 4 of year 0, Dirksen sold the machine for $24,750. Use MACRS Table. Note: Loss amounts should be indicated by a minus
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 $29,750 to use in its business. On December 4 of
year 0, Dirksen sold the machine for $24,750. Use
MACRS Table.
Note: Loss amounts should be indicated by a minus
sign. Do not round percentages used for calculations.
Round other intermediate computations to the
nearest whole dollar amount. 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?
Description
Total Gain or (Loss) Recognized
Character of Recognized Gain or (Loss):
Ordinary Gain or (Loss)
§1231 gain or (loss)
$
Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ea4f3f0-383e-4a7b-981f-7e3e3116eae7%2F2e80897c-62b1-4dc5-92a6-b5d5a038aedd%2Fw9d2e8o_processed.jpeg&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 $29,750 to use in its business. On December 4 of
year 0, Dirksen sold the machine for $24,750. Use
MACRS Table.
Note: Loss amounts should be indicated by a minus
sign. Do not round percentages used for calculations.
Round other intermediate computations to the
nearest whole dollar amount. 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?
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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