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 10) In a transaction for the sale of a commercial office building (1231/1250) at an amount in excess of the original purchase price, any previous taken straight-line depreciation is: a. Recaptured as ordinary income b. Treated as capital gain under regular capital gain rules c. Ignored for the calculation of capital gains d. Treated as unrecaptured Section 1250 gain and taxed at 25%