In 2020, Christopher Smith sold dance stage audio and lighting equipment used in his for-profit nightclub with a fair market value of $200,000. The equipment's original basis was $190,000 and Smith's accumulated depreciation in the equipment at the time of the sale (after 2020 depreciation) was $40,000. a. What is the amount and character of the gain that Smith will recognize in the current year? b. Refer to part a. Assume Smith had a net 1231 loss of $1,000 in 2019. If Christopher Smith's marginal tax rate is 24% (and thus his long-term capital gains rate is 15%) and he had no capital losses for the year, what is his total tax liability related to the sale of the equipment in 2020?