Part 1. Multiple Choice (5 questions worth 2 points each, 10 total points possible) 1. In January 2019, Mr. D, who is self-employed, purchased a new automobile, which he uses 100% for business. During 2019, he drove the car 14,000 miles. Mr. D also owns another automobile, which he uses occasionally for business but primarily for personal purposes. During 2019, he drove the second car 2,000 business miles. The second car is not fully depreciated. What is the amount of Mr. D's automobile expense deduction using the standard mileage rate? A. $7,630 B. $8,120 c. $8,720 $9,280 2. In 1985, Donald purchased an apartment building for his rental business that he owns as a proprietorship for a total purchase price of $3,500,000. The property was placed in service on July 1, 1985. Donald depreciated the building using the ACRS rules and the building was fully depreciated before selling the building. Donald sold the building on December 31, 2019, for $4,000,000. Gain on the sale will be reported as a A. Section 1231 gain of $4,000,000. B. Section 1245 gain of $3,500,000 and Sec. 1231 gain of $500,000. c. Section 1250 gain of $700,000 and Sec. 1231 gain of $3,300,000. D. Section 1245 gain of $700,000 and Sec. 1231 gain of $3,300,000