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:

Moral Judgements

Evaluations or decisions made by individuals regarding what is right or wrong in human behavior and actions, based on ethical principles.

Authority Figures

Individuals in positions of power who are respected and obeyed by others, often due to their perceived knowledge, expertise, or position.

Attachment

The enduring affectional tie that binds one person to another.

Ainsworth

Refers to Mary Ainsworth, a developmental psychologist known for her work on attachment theory, particularly the Strange Situation assessment.