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Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,500 and it has claimed $25,400 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.)

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1. a. Assuming that Hauswirth receives $56,700 in cash for the warehouse, compute the amount and character of Hauswirths recognized gain or loss on the sale.

   recognized
   character of recognized gain/ loss
   ordinary gain/ loss
   1231 gain / loss

   1. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $56,700, compute Hauswirths realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land.

      gain realized
      gain recognized
      deferred gain
      adjusted basis in new property

2. c. Assuming that Hauswirth receives $39,500 in cash in year 0 and a $61,000 note receivable that is payable in year 1, compute the amount and character of Hauswirths gain or loss in year 0 and in year 1. (Round "Gross Profit Percentage" to 2 decimal places.)

description	amount	character
amount realized
original basis
accumulated depreciation
adjusted basis
gain realized
depreciation recapture		ordinary income
gain eligible for installment reporting
gross profit percentage
installment gain in year 0		section 1231 gain
installment gain in year 1		section 1231 gain

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