Sarah Company manufactures yarn, thread, woven fabrics, and knitted goods. During 2017, Sarah purchased and placed in service the following assets: On May 18, Sarah purchased and placed in service a factory building costing $1,200,000. She estimated the value of the land is between $300,000 and $500,000. On June 6, Sarah purchased and placed in service used manufacturing equipment costing $1,510,000 (5-year MACRS property, -year convention).

(a) In order to minimize her tax liability, Sarah elected to deduct the maximum amount allowed in 2017. Compute Sarahs total cost recovery deduction for 2017. (b) Sarah sold the equipment on December 7, 2020. Compute the amount and character of Sarahs gain/loss in each of the following independent situations. (1) Selling price = $70,000 (2) Selling price = $160,000 (3) Selling price = $1,700,000