50.1K

Verified Solution

Link Copied!

Required information Problem 11-41 (LO 11-3, LO 11-4) (Algo) (The following information applies to the questions displayed below.) In year 0, Longworth Partnership purchased a machine for $44,500 to use in its business. In year 3, Longworth sold the machine for $38,400. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $31100. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Problem 11-41 Part-a (Algo) a. What are the amount and character of the gain or loss Longworth will recognize on the sale? Amount $ 38.400 Description Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gair)(Loss) 51231 gain/loss) $ Required information Problem 11-41 (LO 11-3, LO 11-4) (Algo) [The following information applies to the questions displayed below.) In year o, Longworth Partnership purchased a machine for $44,500 to use in its business. In year 3, Longworth sold the machine for $38,400. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $31100. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Problem 11-41 Part-b (Algo) b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sole proceeds are increased to $68,000? Amount Description Tots Ganytos) Recognized Character of Recognized Gain (Loss) Ordinary Gainvilos) 51231 gain/loss) ms Property Dispositions Saved Hel Required information Problem 11-41 (LO 11-3, LO 11-4) (Algo) (The following information applies to the questions displayed below) In year o, Longworth Partnership purchased a machine for $44,500 to use in its business. In year 3, Longworth sold the machine for $38,400. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $31,100. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Problem 11-41 Part-c (Algo) c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $11,200? Amount Description Total Gain/(1.068) Recognized Character of Recognized Gain (1.080) Ordinary Gain/(Loss) $1231 gain/(loss)

Answer & Explanation Solved by verified expert

See Answer