Melody Works in Her Home Using a Computer She Purchased

question 27

Multiple Choice

Melody works in her home using a computer she purchased two years ago for $2,500.The total adjusted basis for the computer is now $1,000.Her husband and children used the computer 20 percent of the time to play computer games and for personal correspondence.She sells the computer for $1,200.How much and what kind of gain does Melody recognize?

• A)$200 capital gain
• B)$200 Section 1245 recapture
• C)$200 Section 1231gain
• D)$460 Section 1245 recapture

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Definitions:

Antabuse Therapy

A treatment regimen involving the administration of disulfiram, used to support the recovery of people with alcohol dependence by producing unpleasant effects when alcohol is consumed.

Addiction

Addiction is a psychological and physical inability to stop consuming a chemical, drug, activity, or substance, even though it is causing psychological and physical harm.

Relapse Prevention

Strategies and techniques employed to prevent a recurrence of a previous undesirable behavior or condition, such as substance abuse or a depressive episode.

Stressful Situations

Conditions or scenarios that lead to tension or anxiety in individuals.