Exercise $17-24($Algorithmic$)($LO$.3)$

Jacob purchased business equipment for $$63,900$ in $2020$ and has taken $$38,340$ of regular MACRS depreciation. Jacob sells the equipment in $2023$ for $$28,755.$

What is the amount and character of Jacob's gain or loss?

If an amount is zero, enter $"0".$

Jacob has $1245$ gain of $ $$ and $1231$ gain of $ $.$

Feedback $q,$

Check My Work

The Code contains two major recapture provisions$-1245$ and $1250.$ These provisions cause gain to be treated initially as ordinary gain $($income$).$ Thus, what may appear to be a $1231$ gain is ordinary gain instead. why is this $1245$ and not $1231$