Dale owns business equipment with a $100,000 FMV and an adjusted basis of $60,000. The property was originally acquired for $150,000. Which one of the following transactions would result in recognition of $40,000 ordinary income by Dale due to the depreciation recapture rules of Sec. 1245?
a. He makes a gift of the property to a daughter.
b. He contributes the property to a qualified charitable organization.
c. He disposes of the equipment in an installment sale and receives $10,000 cash in the year of sale.