QUESTION TWELVE [SEVEN POINTS! Vertical, Inc., has a 2019 net 1231 gain of $84,000 and had a $12,000 net 1231 loss in 2018. The company also had a $12,000 net 1231 loss in 2017 and a $15,000 net 1231 loss in 2016. All of these prior losses are unrecaptured. For 2019, how will Vertical's net 1231 gain be treated (how much will be treated as ordinary income and how much as long-term capital gain)? If Vertical could wait until 2020 to sell the asset associated with the net 1231 gain of $84,000, would there be any benets to the taxpayer (other than deferring the gain)? Assume that Vertical owns another asset (equipment used to produce inventory) originally purchased for $700,000. Total depreciation deductions amounted to $520,000. The equipment is sold in 2021 for $800,000. How much is the recognized gain and what is the character of the gain