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Scenario $4$: Depreciation Recapture: The Nitty$-$Gritty

Sole proprietor sells several items of business equipment, each with these details:

Item A: Orig. Cost $$20,000,$ Accum. Deprec. $$18,000,$ Sold for: $$5,000$

Item B: Orig. Cost $$50,000,$ Accum. Deprec. $$60,000,$ Sold for: $$12,000$

Item C: Orig Cost $$35,000,$ Accum. Deprec. $$22,000,$ Sold for: $$8,000$

Net Business Income $($excluding these sales$)$: $$80,000$

Interest and Dividend Income: $$600$

Itemized Deductions: $$14,000$

Allowable deduction for self$-$employment tax: $$6,500$

Calculate:

The type of gain$/$loss $($ordinary$,$ capital, Sec. $1231)$ and amount for each item.

AGI, Taxable Income, and Total Tax Liability