Question 21. During 2022, Beth sold a piece of equipment used in her business for $100,000 of cash proceeds. The equipment was purchased 3 years ago and had an original cost of $130,000 and accumulated depreciation deductions of $85,000. Beth has not had any net Section 1231 losses in the last 5 years and has no other Section 1231 business asset disposals in 2022. What is the net gain or loss recognized on this transaction, and how is it characterized? A. $55,000 net recognized gain, characterized as an $85,000 ordinary gain and ($30,000) Section 1231 loss B. $55,000 recognized gain, characterized as a $55,000 Section 1231 gain C. $55,000 recognized gain, characterized as a $55,000 ordinary gain D. ($30,000) recognized loss, characterized as a ($30,000) Section 1231 loss

Question 22. During 2022, Beth sold a piece of equipment used in her business for $150,000 of cash proceeds. The equipment was purchased 3 years ago and had an original cost of $130,000 and accumulated depreciation deductions of $85,000. Beth has not had any net Section 1231 losses in the last 5 years and has no other Section 1231 business asset disposals in 2022. What is the net gain or loss recognized on this transaction, and how is it characterized? A. $105,000 net recognized gain, characterized as an $85,000 ordinary gain and $20,000 Section 1231 gain B. $105,000 recognized gain, characterized as a $105,000 Section 1231 gain C. $105,000 recognized gain, characterized as a $105,000 ordinary gain D. $20,000 recognized gain, characterized as a $20,000 Section 1231 gain Question 23. During 2022, Nancy sold a building used in her business for $550,000. The building was purchased 15 years ago at an original cost of $400,000. Nancy has accumulated depreciation deductions (using the straight-line method) of $250,000. Nancy has not had any net

Please include explanation and reasoning.