Flag Butte sold a machine to a machine dealer for $51,000. Butte bought the machine for $54,000 several years ago and has claimed $12000 of depreciation expense on the machine. What is the amount and type or character of Butte's gain or loss?

Logan, a 50 percent shareholder in Military Gear Inc., is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume Military Gear Inc has a $104,000 loss for the year, Logan's tax basis in his Military Gear Inc. stock was $152,000 at the beginning of the year, and he received $77,000 ordinary income from other sources during the year. Assuming Logan's marginal income tax rate is 24%, how much more tax will Logan pay currently if Military Gear Inc. is a C corporation compared to the tax he would pay if it were an S corporation?