Lorenzo owns equipment that cost $500,000 and has an adjusted basis of $230,000. If the straight-line method of depreciation had been used, the adjusted basis would have been $300,000.

a. What is the maximum selling price that Lorenzo could sell the equipment for without having to recognize any Section 1245 ordinary income?

b. If he sold the equipment and had to recognize $61,000 of Section 1245 ordinary income, what was his selling price