John, an individual, bought an asset (personal property) for $800,000 and has claimed $205,000 of depreciation deductions against the asset. John has a marginal tax rate of 32 percent. What is the amount and character of Hart's recognized gain or loss if the asset is tangible personal property sold for $845,000? $250,000 ($205,000 is Section 1245 property subject to 32% tax rate and $45,000 L/T Capital Gains rates) $250,000 ($205,000 is Section 1245 property subject to 25% tax rate and $45,000 L/T Capital Gains rates) LL LLL C. $45,000 (the entire $45,000 is taxed at L/T Capital Gains tax rates) $250,000 (As Section 1231 property the gain is not subject to recapture gains will be taxed at L/T V. Capital Gains rates) E. $250,000 ($205,000 is Section 1250 property subject to 32% rate and $45,000 L/T Capital Gains)