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Part $1$

KatieKatie

purchased a computer three years ago for

$ $16$ comma $700$$$16,700$

to use exclusively in her business. She expensed the entire cost of the computer under Sec. $179.$ If she sells the computer during the current year for

$ $4$ comma $200$$$4,200,$

what is the amount and character of her recognized$$ gain? $($Complete all input fields. Enter a$"0"$ if there is no recognized$$ gain.

straightminus$$line

method for the building.$$ Eric's original cost for the building is$$ $$420,000$ and

costminus$$recovery

deductions are$$ $$120,000.$ Eric has taxable income of$$ $$750,000$ and has never sold any other business assets. If the building is sold for$$ $$560,000,$ the tax results are

Question content area bottom

Part $1$

A$.$

$$$$260,000$ Sec. $1231$ gain, all taxable at$20\%.$

B$.$

$$$$120,000$ Sec. $1245$ ordinary$$ income, $$140,000$ Sec. $1231$ gain taxable at$20\%.$

C$.$

$$$$260,000$ unrecaptured Sec. $1250$ gain, all taxable at$25\%.$

D$.$

$$$$260,000$ Sec. $1231$ gain, of which$$ $$120,000$ is unrecaptured Sec. $1250$ gain taxable at$25\%$ and the$$ $$140,000$ balance is taxable at$20\%.$