[ANSWERED] Sec. 1245. Elizabeth owns equipment that cost $500,000 and has an adjusted basis of $230,000. If the

Sec. 1245. Elizabeth owns equipment that cost $500,000 and
has an adjusted basis of $230,000. If the straight -line method of depreciation
had been used, the adjusted basis would be $300,000.
a. What is the maximum selling price that she could sell the
equipment for without having to recognize Sec. 1245 ordinary income?
b. If she sold the equipment and had to recognize $61,000 of
Sec. 1245 ordinary income, what was the selling price?