Yes they qualify for the exclusion.

It is not a separate asset.

I am doing a bulk sale on the depreciation schedules attached to form 4797. I have read the instructions several times sent earlier but if I enter full sales price the cost basis still only comes through at 9.42% of the total cost of the asset. The only way I could get it to work is to enter 9.42% of the sales price and expenses of sale which doesn't really look right either.