Billy Bob bought depreciable business equipment for $100,000 and took $50,000 in MACRS depreciation. The AMT depreciation over the same period is $10,000. Billy Bob sold the machine for $60,000.

Problem 1, Part A Compute the IRC Section 1245 recapture on the sale of the machine (10).

Problem 1, Part B Compute the 1245 recapture if the selling price of the equipment is $40,000 instead of $60,000

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