Chapter 13 Homework

3.  The Pear Corporation owns equipment with a $300,000 adjusted basis. The equipment was purchased six years ago for $650,000. Assume Pear sells the equipment for the selling prices given in the three independent cases below.

What are the amount and character of Pear’s recognized gain or​ loss? ​(Assume the adjusted basis of the equipment was calculated using the depreciation that is allowed or​ allowable.)