In year 0, Javens Inc. sold machinery with a fair market value of $580,000 to Chris. The machinery’s original basis was $454,720 and Javens’s accumulated depreciation on the machinery was

In year 0, Javens Inc. sold machinery with a fair market value of $580,000 to Chris. The machinery’s original basis was $454,720 and Javens’s accumulated depreciation on the machinery was $68,000, so its adjusted basis to Javens was $386,720. Chris paid Javens $58,000 immediately (in year 0) and provided a note to Javens indicating that Chris would pay Javens $87,000 a year for six years beginning in year 1. a) is the amount and character of the gain that Javens will recognize in year 0? is the amount and character of the gain that Javens will recognize in year 0? (Do not round intermediate computations.) Description Amount Recognized Gain Character of Recognized Gain: Ordinary Gain §1231 gain

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