7) Which of the following creates a potential Section 1245 result? a. The amortization of goodwill b. The immediate expensing under Section 179 c. The sale of tangible personalty used in a trade or business at a gain d. A Section 1231 loss from a property's disposition 8) Maya owns an office building in downtown Cleveland. She originally purchased the building for $2,000,000 and took straight-line depreciation deductions of $1,200,000. Maya is in the 37% tax bracket for ordinary income and the highest tax bracket for capital gains. What are the tax consequences if she sells the building for $2,100,000 (ignore the 3.8% net investment income tax)? a. She will have ordinary income of $0. b. She will have $1,200,000 of gain taxed at 25% c. She will have 1231 gains of $100,000 taxed at 20% d. All of the above 9) Sal owns a meat packing company. Several years ago he purchased a meat-cutting machine for $3,000 and has since taken $1,200 in depreciation deductions. He is now ready to replace the machine with a more modern tool, but is not sure what the tax consequences of selling the machine will be? Which of the following statements is true? a. If he sells the machine for $3,000, he will have no gain or loss b. If he sells the machine for $1,800, he will have a $1,200 ordinary loss c. If he sells the machine for $1,700 he will have a $100 ordinary loss d. If he sells the machine for $3,200, he will have $200 or ordinary income