5. Quid: Corporation sold a machine for $30,000 that it had acquired three years ago for $68,000. Ifits adjusted basis when sold was $50,000, what should Quid-c report on its tax return as a result ofthis sale? a. Section 1245 recapture of $1 8,000; Section 1231 gain of $30,000; 1). Ordinary income = $12,000 and Section 1231 gain: $13,000 c. Section 1245 recapture = $18,000 and Section 1231 = $12,000; (1. Section 1231 gain = $38,000 e. None of the above