$1.$ Vivian$$s AGI is $$40,000$ without considering the gains and

losses below. Determine her revised AGI after the inclusion of any applicable gains or

losses for the following independent cases. Assume she has no nonrecaptured net Sec.

$1231$ losses at the beginning of the year.

Case A Case B Case C Case D

Sec. $1231$ gain $$19,000$ $$10,000$ $$30,000$ $ $5,000$

Sec. $1231$ loss $5,00022,00039,00012,000$

LTCG $006,3000$

LTCL $0004,20042.$

$2.$Elizabeth owns equipment that cost $$500,000$ and has an adjusted basis of

$$230,000.$ If the straight$-$line method of depreciation had been used, the adjusted basis

would be $$300,000.$

a$.$ What is the maximum selling price that she could sell the equipment for without hav$-$ing to recognize Sec. $1245$ ordinary income?

b$.$ If she sold the equipment and had to recognize $$61,000$ of Sec. $1245$ ordinary income,

what was the selling price?