6) The sale of machinery at a loss that was used in a trade or business and held for more than one year results in the following type of loss? A) Capital B) $291. C) $1231. D) $1245. E) None of the choices are correct. 7) The sale of computer equipment used in a trade or business for 9 months results in the following type of gain or loss? A) Capital. B) Ordinary. C) $1231. D) $1245. E) None of the choices are correct. 8) What is the character of land used in an active trade or business for two years? A) Capital B) Ordinary. C) $1231. D) Investment. E) None of the choices are correct. 9) Which of the following is true regarding depreciation recapture? A) Changes the character of a loss. B) Changes the character of a gain. C) Changes the amount of a gain. D) Only applies to ordinary assets. E) None of the choices are correct. 10) Company sold a piece of land that it uses in its business for $52,000. Company bought land two years ago for $42,500. What is the amount and character of Company's gain? A) $9,500 $1221. B) $9,500 $1231. C) $9,500 $1245. D) $9,500 $1250. E) None of the choices are correct