This year, Taxpayer sold equipment to his wholly owned corporation at its fair market value of $75,000. Taxpayer acquired the equipment several years ago for a cost of $70,000 and has deducted $43,761 in depreciation through the date of sale. Determine the amount and ultimate character of the gain or loss Taxpayer realizes on the sale/ This year, Taxpayer sold equipment to his wholly owned corporation at its fair market value of $75,000. Taxpayer acquired the equipment several years ago for a cost of $70,000 and has deducted $43,761 in depreciation through the date of sale. Determine the amount and ultimate character of the gain or loss Taxpayer realizes on the sale?

 

a $48,761 ordinary income

b $43,761 unrecaptured section 1250 gain plus $5,000 section 1231 gain

c $48,761 section 1231 gain

d $43,761 ordinary income plus $5,000 section 1231 gain