Arlington LLC purchased an automobile for $80,000 on July 5, 2018. What is Arlington's depreciation expense for 2018 if its business use percentage is 80 percent (ignore any possible bonus depreciation)? (Use MACRS Table 1, and Exhibit 10-10.)

Multiple Choice

$6,125.

$8,100.

$8,000.

$12,000.

None of the choices are correct.

Bateman Corporation sold an office building that it used in its business for $800,850. Bateman bought the building ten years ago for $599,575 and has claimed $201,275 of depreciation expense. What is the amount and character of Bateman's gain or loss?

Multiple Choice

$40,255 ordinary and $362,295 1231 gain.

$201,275 ordinary and $201,275 1231 gain.

$402,550 ordinary gain.

$402,550 capital gain.

None of the choices are correct.