A business machine, which cost $10,000 two years ago, was sold on January 1, this year, for $19,000. Depreciation was as follows for the calendar-year taxpayer:

Actual Depreciation Straight-line Would

Allowed and Allowable Have Been

Two years ago $1,429 $1,000

Last year 2,449 2,000

This year 875 500

$4,753 $3,500

The adjusted basis of the property sold is:

	a.	$5,247
	b.	$6,500
	c.	$10,000
	d.	None of the above

The gain realized and recognized on the sale is:

	a.	$9,000
	b.	$12,500
	c.	$13,753.
	d.	$19,000
	e.	None of the above

The character or nature of the gain realized and recognized is:

	a.	All ordinary income
	b.	All capital gain
	c.	$4,753 ordinary income, $9,000 1231 capital gain
	d.	$3,500 ordinary income, $9,000 1231 capital gain
	e.	None of the above