Travis purchased machinery on March 1, 2018, for $35,000. He used the machinery 100% in his small business until October 15, 2021, when he sold it. He properly took $22,000 of depreciation expense for the tax years 2018 through 2021. Identify the amount and character of recognized gain/(loss) for this particular transaction:

Question: If sold for cash of $18,000...

A. The amount of ordinary income recapture us (5000) loss 

B. After considering recapture, the amount of remaining section 1231 gain or loss (to go to the bucket) is 4000 gain

Answer rating: 100% (QA)

cost 35000 dep 22000 ... View the full answer