Butte sold a machine to a machine dealer for $$50,100.$ Butte bought the machine for $$54,900$ several years ago and has claimed $$12,450$ of depreciation expense on the machine. What is the amount and character of Butte's gain or loss?

a$.$ $$7,650,$$$1231$ loss

b$.$ $$4,800,$$$1231$ loss

c$.$ $$7,650,$ ordinary gain

d$.$ $$7,650,$ capital gain

e$.$ None of the choices are correct.

When do unrecaptured $1250$ gains apply?

a$.$ When the taxpayer makes the election

b$.$ It applies only when noncorporate taxpayers sell depreciable real property at a gain

c$.$ It applies when $$1245$ recapture trumps $$1250$ recapture

d$.$ It applies only when real property purchased before $1986$ is sold at a gain

e$.$ None of the choices are correct.

Which of the following is true regarding the $$1231$ look$-$back rule?

a$.$ It only applies when a $$1231$ loss occurs.

b$.$ It only applies when a $$1231$ gain occurs.

c$.$ It only applies when a $$1231$ gain occurs and there is a $$1231$ loss in the prior five years.

d$.$ It only applies when a $$1231$ gain occurs and there is a nonrecaptured $$1231$ gain in the prior five years.

e$.$ None of the choices are correct.

Which of the following regarding the Form W$-4$ is incorrect?

a$.$ It determines an employee's income tax withholding.

b$.$ Employees can claim dependents eligible for the child tax credit.

c$.$ Employees can specify additional amounts to be withheld each month.

d$.$ The form is only required if an employee has multiple jobs.

For compensation plans adopted by a publicly traded company in the current year, when a CEO's salary exceeds $$1,000,000,$ the employee blanktaxed on the entire amount, and the employer blankallowed a deduction on the entire amount.

a$.$ is; is

b$.$ is; is not

c$.$ is not; is

d$.$ is not; is not