Larry is the sole proprietor of a trampoline shop. During the current year he had the following transactions. Determine the amount and character (ordinary, 1231) of each transaction:
a. He sold some unimproved land that he used as a parking lot for his business. He had owned the land for 5 years. The purchase price was $25,000 and his A/B was $15,000.
b. He sold a truck used to deliver exercise equipment. The truck had been owned for 6 years. He sold the truck for $3,500. His A/B was $0 (it had been fully depreciated). He had taken $7,000 of depreciation.
c. He sold a cash register that he had used in his business for 3 years. His A/B in the cash register was $2,000. He sold the cash register for $5,200. He had taken $2,400 of depreciation.
d. He sold an apartment building for $300,000. He had owned the building for 6 years. His A/B was $125,000 and he had taken $25,000 of straight-line depreciation.
e. He sold a copier used in the business. He had owned the copier for 3 years. His A/B in the copier was $1,200 and the selling price was $900. He had taken $500 of depreciation.