(a) Vertical, Inc., has a 2016 net Section 1231 gain of $43,000 and had an $18,000 net Section 1231 loss in 2015. Verticals first year in business was 2015. For 2016, calculate how much of Verticals net Section 1231 gain is ordinary gain and how much is capital gain.

(b) Blue Corporation sold machinery for $53,000 on December 23, 2016. The machinery had been acquired on April 1, 2014, for $49,000. Its adjusted basis on December 23, 2016, was $32,000. Calculate the recognized gain. Calculate how much of the recognized gain is Section 1231 gain and how much is Section 1245 recapture gain.

****Please show work so I know how to find the answer