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What is the amount and nature of mary gain

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Question - This question deals with Section 1231 Gains and Losses and Depreciation Recapture. In 2015, Mary sells for $14,000 a machine used in her business. The property was purchased on May 1, 2013 at a cost of $13,000. Mary has claimed depreciation on the machine of $8,000. What is the amount and nature of Mary's gain as a result of the sale of the machine?

a. $9,000 Section 1231 gain

b. $9,000 ordinary income under Section 1245

c. $8,000 ordinary income and $1,000 Section 1231 gain

d. $8,000 Section 1231 gain and $1,000 ordinary income under Section 1245

e. none of the above

Reference no: EM132064981

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