Ralph owns a business printing press with a $170,000 adjusted basis; he paid $250,000 for the printing press and it is currently worth $195,000. Consider each of the following situations:

a. Ralph sells the printing press for its FMV. What is the amount and character of the gain recognized by Ralph?

b. Ralph gives the printing press to his son Mickey to use in his printing business (he does not owe any gift tax on the gift). Mickey decides to sell it for the FMV instead of using it. What is the amount and character of gain recognized by Mickey?

c. Ralph dies suddenly and his son Mickey inherits the property. What is Mickeys basis in property? What happens to the 1245 depreciation recapture potential?