$!$

Required information

Problem $03-42($LO $03-3,$ LO $03-4)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

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 answers blank. Enter zero if

applicable.

Problem $03-42$ Part$-$b $($Algo$)$

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?

$16$

$!$

Required information

Part $1$ of $2$

$0\mathrm{.}47$

points

Problem $03-42($LO $03-3,$ LO $03-4)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

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 answers blank. Enter zero if applicable.

Problem $03-42$ Part$-$a $($Algo$)$

a$.$ What are the amount and character of the gain or loss Dirksen will recognize on the sale?

Answer is complete and correct.

$\backslash$table$[[$Description$,$Amount$],[$Total Gain or $($Loss$)$ Recognized,$$,(1,750)$