On December 31, 2019, Henry, a sole proprietor, sold for $70,000 a machine that was used in his business. The machine had been purchased in a few years ago for $50,000, and when it was sold, it had accumulated depreciation of $15,000 and an adjusted basis of $35,000. For the year 2019, how should this gain be treated?

	a.	1245 income of $35,000
	b.	Section 1231 gain of $35,000
	c.	Section 1231 gain of $20,000 and 1245 income of $15,000
	d.	Section 1231 gain of $15,000 and 1245 income of $20,000
	e.	None of the above Jim and Wendy rent out their home in Florida for 208 days during the year and use it personally for 36 days during the year. They incurred the following expenses: Real estate tax $6,000 Mortgage interest 12,500 Utilities and maintenance 7,000 Depreciation (total for property) 4,500 Jim and Wendy had income of $18,500 from the property. Determine the net income or loss for this property. Use the US Tax Court method and the IRS method to allocate expenses and SHOW ALL WORK!