McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver

Exercise 33

In year 0, Canon purchased a machine to use in its business for $56,000.In year 3, Canon sold the machine for $42,000.Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000.
a.What is the amount and character of the gain Canon will recognize on the sale, assuming that it is a partnership
b.What is the amount and character of the gain Canon will recognize on the sale, assuming that it is a corporation
c.What is the amount and character of the gain Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were increased to $60,000
d.What is the amount and character of the gain Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were decreased to $20,000