Shannon owns two items of business equipment. Both were purchased in 2016 for $100,000, both have a 7-year MACRS recovery period, and both have an adjusted basis of $37,490. Shannon is considering selling these assets in 2020. One of them is worth $60,000, and the other is worth $23,000. Because both items were used in her business, Shannon simply assumes that the loss on one will be offset against the gain from the other and that the net gain or loss will increase or reduce her business income. Which of the following must Shannon determine in order to properly handle this transaction? Select "Yes" if she must determine it; otherwise select "No". a. Whether she plans to purchase any property during the year. No b. The outcome of the 1231 netting process. Yes c. Whether the property is a 1231 asset, a capital asset, or an ordinary asset. d. Whether 1245 depreciation recapture will apply. Yes Yes What is the amount and character of Shannon's gain or loss for each asset? Asset 1: Cost, $100,000; adjusted basis, $37,490; sales price, $60,000: of $ will be treated as ordinary income Due to 1245 depreciation recapture , the entire gain Asset 2: Cost, $100,000; adjusted basis, $37,490; sales price, $23,000: of $ The entire loss when there is a gain will be treated as an ordinary loss on the sale of an asset. , because 1245 depreciation recapture applies only