1a1b1cRequired:1. Determine the gain or loss realized and recognized in the current year for each of these events provided above. Also determinewhether the gain or loss recognized will be $1231, capital, or ordinary.laRequired Information[The following information applies to the questions displayed below.]Moab Incorporated manufactures and distributes high-tech biking gadgets. It has decided to streamline some of itsoperations so that it will be able to be more productive and efficient. Because of this decision it has entered into severaltransactions during the year.2. From the recognized gains or losses determined in part 1, determine the net §1231 gain or loss, the net ordinary gain or loss, and thenet capital gain or loss Moab will recognize on its tax return. Moab Incorporated also has $2,000 of nonrecaptured net §1231 lossesfrom previous years.1dComplete this question by entering your answers in the tabs below.1ea. Moab Incorporated sold a machine that it used to make computerized gadgets for $27,300 cash. It originally bought themachine for $19,200 three years ago and has taken $8,000 in depreciation.Required 1Required 2Determine the gain or loss realized and recognized in the current year for each of these events provided above. Also determine whetherthe gain or loss recognized will be §1231, capital, or ordinary.Note: Do not round intermediate computations. Loss amounts should be indicated by a minus sign.2:b. Moab Incorporated held stock in ABC Corporation, which had a value of $12,000 at the beginning of the year. Thatsame stock had a value of $15,230 at the end of the year.c. Moab Incorporated sold some of its Inventory for $7,000 cash. This Inventory had a basis of $5,000.Asset1fd. Moab Incorporated disposed of an office building with a fair market value of $75,000 for another office building with afair market value of $55,000 and $20,000 in cash. It originally bought the office building seven years ago for $62,000and has taken $15,000 In depreciation.e. Moab Incorporated sold some land held for investment for $28,000. It originally bought the land for $32,000 two yearsago.f. Moab Incorporated sold another machine for a note payable in four annual Installments of $12,000. The first paymentwas received in the current year. It originally bought the machine two years ago for $32,000 and has claimed $9,000 indepreciation expense against the machine.g. Moab Incorporated sold stock It held for eight years for $2,750. It originally purchased the stock for $2,100.h. Moab Incorporated sold another machine for $7,300. It originally purchased this machine six months ago for $9,000and has claimed $830 in depreciation expense against the asset.1g1hTotalsRealizedGain or(Loss)SRecognized $1245 Ordinary $291 OrdinaryGain or (Loss) IncomeIncome0 $0 $0 $< Required 1§1231Gain or(Loss)0 SOrdinary Incomeor (Loss)0 SRequired 2 >Capital Gainor (Loss)S0

Realized gain and loss is the gain/loss that is actually realized in monetary terms and not just as…

Required information [The following information applies to the questions displayed below.] Moab Incorporated manufactures and distributes high-tech biking gadgets. It has decided to streamiline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. a. Moab Incorporated sold a machine that it used to make computerized gadgets for $27,300 cash. It originally bought the machine for $19,200 three years ago and has taken $8,000 in depreciation. b. Moab Incorporated held stock In ABC Corporation, which had a value of $12,000 at the beginning of the year. That same stock had a value of $15,230 at the end of the year. c. Moab Incorporated sold some of its Inventory for $7,000 cash. This Inventory had a basis of $5,000. d. Moab Incorporated disposed of an office building with a fair market value of $75,000 for another office building with a fair market value of $55,000 and $20,000 in cash. It originally bought the office building seven years ago for $62,000 and has taken $15,000 In depreciation. e. Moab Incorporated sold some land held for Investment for $28,000. It originally bought the land for $32,000 two years ago. f. Moab Incorporated sold another machine for a note payable in four annual Installments of $12,000. The first payment was received in the current year. It originally bought the machine two years ago for $32,000 and has claimed $9,000 in depreciation expense against the machine. g. Moab Incorporated sold stock It held for eight years for $2,750. It originally purchased the stock for $2.100. h. Moab Incorporated sold another machine for $7,300. It originally purchased this machine six months ago for $9,000 and has claimed $830 in depreciation expense against the asset. Required: 1. Determine the gain or loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain or loss recognized will be §1231, capital, or ordinary. 2. From the recognized gains or losses determined in part 1, determine the net §1231 gain or loss, the net ordinary gain or loss, and the net capital gain or loss Moab will recognize on its tax return. Moab Incorporated also has $2,000 of nonrecaptured net §1231 losses from previous years.