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In year 0 , Javens incorporated sold machinery with a fair market value of $500,000...

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Accounting

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In year 0 , Javens incorporated sold machinery with a fair market value of $500,000 to Chris. The machinery's original basis was $394,000 and Javens's accumulated depreclation on the machinery was $60,000, so its adjusted basis to Javens was $334,000. Chris paid Javens $50,000 immedately (in year 0 ) and provided a note to Javens indicating that Chris would pay Javens $75,000 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 ? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What are the amount and character of the gain that Javens will recognize in year 0 ? Note: Do not round intermediate computations

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