Goldmine Corporation sold machinery for $67,000 on December 23, 2018. The machinery had been depreciated for 4 years. It was purchased on January 2, 2015, for $100,000 and had an adjusted basis of $60,000 on the date of the sale. For 2018, what should Goldmine report? a. A $1231 gain of $3,500 and $3,500 of ordinary income. AS 1231 gain of $7,000. b. AS 1231 gain of $33,000 and $7,000 of ordinary income. Ordinary income of $7,000 d None of the above. In 2019, Lee invests $160,000 for a 40% interest in a partnership in which he is a material participant. The partnership incurs a loss with $200,000 being Lee's share. He has no other investments. Which of the following statements is incorrect? Since Lee has only $160,000 of capital at risk, he cannot deduct any more than this amount against his other income in 2019. Lee has a nondeductible loss of $40,000 in 2019 which can be carried over and used in future years (subject to the at-risk provisions). b. If Lee has taxable income of $80,000 from the partnership in 2020 and there are no other transactions that affect his at-risk amount, he can use all of the $40,000 loss carried over from 2019. Lee's $200,000 loss nondeductible in both 2019 and 2020 under the passive activity loss provisions. d All of the statements are correct