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Moab Incorporated manufactures and distributes high$-$tech biking gadgets. It has decided to streamiline some of its

operations so that it will be able to be more productlve and efficlent. Because of this decision it has entered Into several

transactlons durling the year.

a$.$ Moab Incorporated sold a machine that It used to make computerized gadgets for $$27,300$ cash. It originally bought the

machine for $$19,200$ three years ago and has taken $$8,000$ in depreclation.

b$.$ Moab Incorporated held stock In ABC Corporation, which had a value of $$12,000$ at the beginning of the year. That

same stock had a value of $$15,230$ at the end of the year.

c$.$ Moab Incorporated sold some of Its inventory for $$7,000$ cash. This Inventory had a basis of $$5,000.$

d$.$ Moab Incorporated dlsposed of an office bullding with a falr market value of $$75,000$ for another office building with a

falr market value of $$55,000$ and $$20,000$ in cash. It orlginally bought the office bullding seven years ago for $$62,000$

and has taken $$15,000$ in depreclation.

e$.$ Moab Incorporated sold some land held for investment for $$28,000.$ It originally bought the land for $$32,000$ two years

ago.

f$.$ Moab Incorporated sold another machine for a note payable in four annual Installments of $$12,000.$ The first payment

was recelved in the current year. It originally bought the machine two years ago for $$32,000$ and has claimed $$9,000$ in

depreclation expense against the machine.

g$.$ Moab Incorporated sold stock it held for eight years for $$2,750.$ It originally purchased the stock for $$2100.$

h$.$ Moab Incorporated sold another machine for $$7,300.$ It originally purchased this machine six months ago for $$9,000$

and has claimed $$830$ in depreclation expense against the asset.

Required:

Determine the gain$/$loss realized and recognized in the current year for each of these events provided above. Also determine

whether the galn$/$loss recognized will be $$1231,$ capital, or ordinary.

$2$ From the recognized gains$/$losses determined In part $1,$ determine the net $$1231$ gain$/$loss$,$ the net ordinary gain$/$loss$,$ and the net

capital galn$/$loss Moab will recognize on Its tax return. Moab Incorporated also has $$2,000$ of nonrecaptured net $$1231$ losses from

prevlous years.

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

From the recognized gains$/$losses determined in part $1,$ determine the net $$1231$ gain$/$loss$,$ the net ordinary gain$/$loss$,$ and the

net capital gain$/$loss Moab will recognize on its tax return. Moab Incorporated also has $$2,000$ of nonrecaptured net $$1231$

losses from previous years.

Note: Do not round intermediate computations, Loss amounts should be indicated by a minus sign.

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