A Business Machine Purchased April 10, 2017, for $62,000 Was

Essay

A business machine purchased April 10, 2017, for $62,000 was fully depreciated in 2017 using § 179 immediate expensing. On August 15, 2018, the sole proprietor who owned the machine gave it to his son. On that date, the machine's fair market value was $57,000. The son did not use the machine in business or hold it as inventory and the machine was sold on November 22, 2018, for $53,000.What is the amount and nature of the gain or loss from disposition of the machine? Where is it reported in the son's tax return?