5. Sam, a calendar year taxpayer sold 2 Section 1231 assets during the year. He had $5,000 of non- recaptured net Section 1231 losses from 3 years ago. What is the amount and character of the gain? Asset Purchase Date Cost Sales Price Sales Date Equipment Computer 11/12/2016 4/12/2017 $105,000 $20,000 Accumulated Depreciation $46,000 $13,500 $125,000 $3,750 8/19/19 8/19/19 A. $5,000 as ordinary income, gain of $59.500 subject to 1245 recapture and a L/T capital loss of $1,250. B. $5,000 as ordinary income, gain of $46,000 subject to 1245 recapture and a L/T capital gain of $12,250. C. $5,000 as ordinary loss, gain of $46,000 subject to 1250 recapture and a L/T capital gain of $17,250 D. $49,750 of gain subject to 1245 recapture and a L/T capital gain of $13,500. E. $5,000 as ordinary income, gain of $61,000 subject to 1245 recapture and a L/T capital loss of $2,750 6. Identify each of the following expenditures as either a deduction For AGI (FOR), deduction From AGI (FROM) or not deductible (ND), by placing one of the letters (FOR, FROM or ND) in the blanks below. A. Safe Deposit Fees. The safe deposit box is used to hold marketable securities B. Cost of plumbing repairs for a rental property C. A sole proprietor of a business purchased supplies that will be used in the year purchased D. Paid a lawyer to for estate planning to draft a will E. Made a charitable donation to church (qualified organized charity) F. Made a contribution to an Individual Retirement Account (IRA). Taxpayfr is not covered by any other pension plan G. Taxpayer took out a second loan on his primary residence. The proceeds were used to purchase a new boat. The 1 and 2-mortgage total $575,000 H. Paid estimated state taxes during the year