5. How are employee discounts treated for employee purchases of inventory? 6. How are employee discounts treated for employee purchases of services? 7. Section 1245 depreciation recapture generally recaptures gain as ordinary income to the extent of accumulated depreciation or the recognized gain, whichever is less. Define the type of property that is subject to Section 1245 depreciation recapture? 8. What are the carryover provisions for Section 1245 depreciation recapture?