16) Which one of the following would be considered ondinary a) Semi-track used in a shipping business b) Royalty rights owned by a country musie s income propeny a bas c) Inventory sold by ABC Corporation d) Building used by Jack's Cake Shop at B 17) Which of the following assets is most likely a capital asset? a) Accounts receivable of X Corporation. b) Fixed-up old lawnmowers for sale by Lightning Lawn Mowing Service. c) Land held as an investment by Jeff d) Inventory of ABC Corporation. 1s) Which of the following statements about Section 1245 property dispositions is FALSE a) The gains recaptured as ordinary income cannot exceed the amount of the realized gain. b) The recapture provisions of section 1245 property apply to all depreciation taken on the property, it does not matter which method of depreciation was used. c) Section 1245 applies to losses. d) A disposition gain on section 1245 property is treated as ordinary income to the extent of the total amount of depreciation deductions allowed. 19) Magnus Corporation purchased $90,000 of five-year equipment on March 10,2017 and elected to expense $20,000 of the cost under Section 179. Compact sells the equipment on July 30, 2018, for $95,000. Compact properly deducted $25,200 under MACRS depreciation for 2017 and % of 2018. What is the proper classification of the gain? a) Section 1245 ordinary income is $45,200; Section 1231 gain is $5,000 b) Section 1245 ordinary income is $50,200; Section 1231 gain is SO c) Section 1245 ordinary income is $5,000; Section 1231 gain is $45,200 d) Section 1245 ordinary income is $0; Section 1231 gain is $50,200