she claim in 2017 assuming her AMTI is $150,000? Will you answer change in 2018? 9. On December 31, 2017 ABC Inc. sold a molding machine it used in its business since January 2013 for $200,000. The original cost of the machine was $400,000 and the depreciation taken was $100,000. How will the gain be taxed? What section of the Internal Revenue Code applies? 10. Lilia purchased an art painting 5 years ago paying $50,000. In 2017 she sold the painting for $500,000. How much Federal tax must she pay on the sale? 11. What criteria must be met in order to deduct a business expense? Hint Chapter 9. 12.On December 30, 2017, ABC Public Relations, Inc. mailed a bill to its cliernt for $50,000 (debit accounts receivable and credit fee income) for services to be performed in 2018. ABC uses the accrual method of accounting for both book and tax purposes. You are the CPA for ABC, how will this be treated for income tax purposes on ABC's 2017 tax return