C five shares of stock purchased on and sold on c

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c.Five shares of stock purchased on January 15, 2016 and sold on June 30, 2016.c.a.Ordinary assetb.Sec. 1231 assetc.Short-term capital assetd.Long-term capital asset1
2.Ford purchased material handling equipment for its Fusion (car) assembly line on November 19, 2014 for $45,000. It later sold the equipment on April 15, 2016 after posting a $1,000 advertisement in a manufacturing magazine with the details on the equipment for sale. The buyer paid $27,000 in cash for the handling equipment. Assume the depreciation able to be claimed for the equipment was $4,000, $6,000, and $6,000 in 2014, 2015, and 2016, respectively. Further, assume the company had no prior unrecaptured net Sec. 1231 losses in years 2011-2015.(total of 30 points possible: 10 points each)a.What was the amount and character of the gain (or loss) Ford will recognize on the sale? If there is more than one type of character (e.g. part is treated as ordinary gain (loss) and part is treated as long-term capital gain (loss)), please say the dollar amountrelated to each type of character (e.g. $50,000 ordinary gain and $50,000 long-term capital gain).b.What was the amount and character of the gain (or loss) Ford will recognize on the sale if the amount of cash paid by the buyer changed to $35,000 instead? As with the
c.What was the amount and character of the gain (or loss) Ford will recognize on the sale if the amount of cash paid by the buyer changed to $50,000 instead? As with the
ANSWERS (5 points each for total, 5 points each for character):
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