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  3. lena is a sole proprietor. in april of this year,

Lena is a sole proprietor. In April of this year, she sold equipment purchased four...

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Accounting

Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for $35,000 with an adjusted basis of $21,000 for $23,100. Later in the year, Lena sold another piece of equipment purchased two years ago with an adjusted basis of $10,500 for $6,825.

What are the tax consequences of these tax transactions?

Lena has an ordinary gain of $...............fill in the blank 2 from the sale of the first equipment.

Lena has a 1231 loss of $............fill in the blank 4 from the sale of the second equipment.

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