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Problem $11-64($LO $11-6)($Algo$)$

In year $0,$ Javens Incorporated sold machinery with a fair market value of $$570,000$ to Chris. The machinery's original basis was $$446,880$ and Javens's accumulated depreciation on the machinery was $$67,000,$ so its adjusted basis to Javens was $$379,880.$ Chris paid Javens $$57,000$ immediately $($in year $0)$ and provided a note to Javens indicating that Chris would pay Javens $$85,500$ a year for six years beginning in year $1.$

Required:

a$.$ What are the amount and character of the gain that Javens will recognize in year $0?$

b$.$ What amount and character of the gain will Javens recognize in years $1$ through $6?$

Complete this question by entering your answers in the tabs below.

Required $A$

Required $B$

What are the amount and character of the gain that Javens will recognize in year $0?$

Note: Do not round intermediate computations.

$\backslash$table$[[$Description$,$Amount$],[$Recognized Gain,$],[$Character of RecognizedrGain:,$],[$Ordinary Gain,$],[1231$ gain,$]]$