Walnut company acquires a new machine for $35,000 and uses it in walnut's manufacturing operations. a few months after walnut places the machine in service, it discovers that the machine is not suitable for walnut's business. walnut had fully expensed the machine in the year of acquisition using § 179. walnut sells the machine for $5,000 in the tax year after it was acquired, but held the machine only for a total of 10 months. what was the tax status of the machine when it was disposed of and the amount of the gain or loss?

Caleb construction (cc) incurs supervisor salaries expense in the construction of homes. if cc manufactures 100 homes in a year, fixed supervisor salaries will be $400,000. with the current construction supervisors, cc's productive capacity is 150 homes in a year. however, if cc is contracts to build more than 150 homes per year, it will need to hire additional supervisors, which are hired as full-time rather than temporary employees. cc's productive capacity would then become 200 homes per year, and salaries expense would increase to $470,000. how would cc’s salaries expense be properly classified? fixed variable mixed stepped curvilinear