On August 1 of year 0, Dirksen purchased a machine for $33,000 to use in...
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Accounting
On August 1 of year 0, Dirksen purchased a machine for $33,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $31,250.
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
Amount
Total Gain or (loss) Recognized
?
Character of Recognized Gain or (Loss)
-----------
Ordinary Gain or (loss)
?
1231 gain or (loss)
?
Answer & Explanation
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