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Question 13 of 75. In January 2015, Sue purchased and placed into service a $20,000 piece of equipment for exclusive use in her busines. Since then, she claimed a $6,000 Section 179 deduction and $6,654 MACRS depreciation. She sold the equipment in November 2017 for $7,000. What is the amount and type of gain or loss, and where on Form 4797 does Sue report the sale? O $346 $1231 loss, Part I O $346 $1231 gain, Part. O $346 $1245 loss, Part IIl $346 $1245 gain, Part II. Mark for follow up
Question 13 of 75 In January 2015, Sue purchased and placed into service a $20,000 piece of equipment for exclusive use in her business. Since then, she claimed a $6,000 Section 179 deduction and $6,654 MACRS depreciation. She sold the equipment in November 2017 for $7,000. What is the amount and type of gain or loss, and where on Form 4797 does Sue report the sale? O $346 $1231 loss, Part i. O $346 $1231 gain, PartI. O $346 $1245 loss, Part Ill. $346 $1245 gain, Par III.
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Answer $ 346 Section 1231 Loss, Part I There will be loss on equipment being sold on price less than for what was purchased. Loss on Sale of = Sale Price. (Purchase Price. Deduction claimed under Sec 179-MACRS Depreciation) equiment $7000 ($20000 $6000 $6654) $346 The equipment has been held in use exclusively for business purpose for more than one year, hence Section 1231 shall apply. Such loss is treated as an ordinary loss. Thus the loss of $346 on sale shall be reported on Form 4797, part I as ordinary loss as Part I reports on sales or exchange of property used in trade or business for more than one yearAnswer $ 346 Section 1231 Loss, Part I There will be loss on equipment being sold on price less than for what was purchased. Loss on Sale of = Sale Price. (Purchase Price. Deduction claimed under Sec 179-MACRS Depreciation) equiment $7000 ($20000 $6000 $6654) $346 The equipment has been held in use exclusively for business purpose for more than one year, hence Section 1231 shall apply. Such loss is treated as an ordinary loss. Thus the loss of $346 on sale shall be reported on Form 4797, part I as ordinary loss as Part I reports on sales or exchange of property used in trade or business for more than one year

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