What amount of gain is recognized on the sale

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In year 0, Longworth Partnership purchased a machine for $55,500 to use in its business. In year 3, Longworth sold the machine for $38,600. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $28,200. (Loss amounts should be indicated by a minus sign.)

a) What amount of gain (loss) is recognized on the sale? (Leave no answer blank. Enter zero if applicable.)

Decription                                                                             amount

Total gain/lossrecognized                                                 ____________

Character of recognized gain/loss                                   _____________

Ordinary gain/loss                                                              ____________

1231 gain/loss                                                                     _____________

b) What amount of gain (loss) is recognized on the sale if the sale proceeds were increased to $66,750?

Decription                                                                             amount

Total gain/lossrecognized                                                 ____________

Character of recognized gain/loss                                   _____________

Ordinary gain/loss                                                              ____________

1231 gain/loss                                                                     _____________

c) What amount of gain (loss) is recognized on the sale if the sale proceeds were decreased to $16,400? (Leave no answer blank. Enter zero if applicable.)

Decription                                                                             amount

Total gain/lossrecognized                                                 ____________

Character of recognized gain/loss                                   _____________

Ordinary gain/loss                                                              ____________

1231 gain/loss                                                                     _____________

Reference no: EM131292449

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