(A) Which one of the following statements is true?

a. Section 1250 recapture potential does not carry over to the donee of a gift.

b. Section 1250 recapture potential carries over to the heir of an estate.

c. Section 1250 recapture potential has no tax impact on charitable contributions.

d. Section 1250 recapture is impacted by the depreciation method used.

(B) Which one of the following statements is true?

a. Section 1231 applies to the sale or exchange of business properties but not to any

involuntary conversions.

b. If there is net Section 1231 loss, it is treated as a short-term capital loss.

c, Personal use property casualty gains and losses are not subject to the Section 1231 rules.

d. Section 1231 property includes non-personal use property where casualty losses exceed

casualty gains for the tax year.