On what form would the gain or loss originally be reported?

Jake purchased a $195,000 crane for his construction business. He sold the crane for $165,000 after taking $109,200 of depreciation. Assume Jake is in the 35% tax rate bracket.

  • On what form would the gain or loss originally be reported?
  • What is the amount of gain or loss on the sale?
  • What amount of the gain or loss is subject to ordinary tax rates?