Dave makes a gift of a piano ($12,000 cost; $9,000 accumulated depreciation), used in his business, to a church. Which of the statements below is true with regard to the charitable contribution deduction for this donation?

1. None of the answers provided is correct.

2. If the FMV of the piano is $13,000, the charitable deduction is $1,000.

3. If the FMV of the piano is $7,000, the charitable deduction is $7,000.

4. If the FMV of the piano is $13,000, the charitable deduction is $4,000.

5. If the FMV of the piano is $7,000, the charitable deduction is $4,000.

B) The results of Ryan Companys first 5 years of operations are presented below:

Year Results of Operations for the Year

1 Net Sec. 1231 gains of $7,000

2 Net Sec. 1231 losses of $4,000

3 Net Sec. 1231 losses of $9,000

4 Net Sec. 1231 gains of $6,000

5 Net Sec. 1231 gains of $15,000

Ryans Year 5 Sec. 1231 gain can be characterized as:

Group of answer choices

1. None of the answers provided is correct.

2. Ordinary income of $15,000

3. LTCG of $7,000 and ordinary income of $8,000

4. LTCG of $15,000

5. LTCG of $8,000 and ordinary income of $7,000