1) An S-Corporation sold a print press for $50,000. The S-Corporation purchased the press for $100,000 and depreciated the piece of equipment $40,000. The S-Corporation will report the following from the transaction

a. A 1245 Gain of $40,000 and a 1231 loss of $50,000

b. A 1231 loss of $10,000

c. A capital loss of $10,000

d. Capital gains of $40,000, ordinary loss of $50,000

e. None of the above

2) In the following transaction (sale of real estate used in business more than 1 year), the taxpayers gain is:

Sales price Real property ........ $150,000

Purchase price ......... 50,000

Depreciation taken, all post 97 ....... 30,000

a. 1231 gain of $130,000

b. Capital gains of $130,000

c. 1231 gain of $100,000, 1250 gain of $30,000

d. 1231 gain of $100,000, 1245 gain of $30,000

e. None of the above

3) An individual sells a piece of personal property, a work tractor used for 3 years on her farm. The individual used the work tractor 100% for a trade or business. The individual purchased the tractor for $50,000, depreciated it $30,000. The individual sold the tractor for $80,000, payable over 4 years at $20,000 per year at 5% interest. Ignoring the interest, what amount is taxable in year one when the buyer made the first $20,000 payment, plus interest

a. $50,000 capital gains

b. $20,000 capital gains, $30,000 ordinary income

c. $5,000 capital gains, $30,000 ordinary income

d. None of the above