The chart below describes the 1231 assets sold by the Annie Company (a sole proprietorship) this year. Compute the gain or loss from each asset disposition and determine the net 1231 gain treated as long-term capital gain for the year. Assume there is a 1231 lookback loss of $10,000.

Asset Acquired Sold Cost Depreciation Sale Price

Copier 6/11/08 5/11/2015 $50,000 $46,500 $ 1,000

Office building 9/13/05 9/24/2015 100,000 24,000 150,000

Delivery Van (not listed property) 1/12/07 1/13/2015 22,000 21,000 30,000

Tooling Machine 8/11/09 7/27/2015 50,000 37,000 19,000

Explain the concepts of 1231, 1245 and 1250. What are these provisions and why were they created? What was Congress trying to achieve by enacting these code sections?