True or false 1. A long-term net gain can offset a short-term net gain, but not a short-term net loss. 2. Carl is self-employed as a doctor and sells machinery out of his office. You made a profit of $3,000 and the asset has accumulated depreciation of $2,000. In this case the $3,000 of the gain is treated by 1231 of capital gain. 3. Business inventory will not be subject to  1245. 4. Sale of business building may be subject to recapture when considering  1250. 5.Jessica bought a piece of land for $100.00 to use for her business after three years. I sold it for a profit of $5,000. This will be treated entirely as a capital gain. 6.The holding (retention) period applies to capital assets, but not to business assets. 7. 1221 of the Internal Revenue Code lists everything that must be capital assets. 8. The term "realized" is everything that the taxpayer receives in the transactions and is called the sale price. 9. Short-term and long-term capital gains have various effects on Adjusted Gross Income.