14. This question will test your ability to read and interpret case law. Jessica purchased a desk at a yard sale five years ago (2017) for $50. This morning she noticed one of the drawers was not opening properly. When she removed the drawer, she found $5,000 in an envelope taped underneath. Assume it is legal for Jessica to keep the money. Using the same reasoning of CESARINI v. U.S., 428 F.2d 812 (CA6), what are Jessicas tax consequences?

a. Jessica will not have to pay any tax on the $5,000 because the money was taxable in the year the desk was purchased and the statute of limitations on the IRSs ability to make an assessment expired.

b. Jessica will not have to pay any tax on the $5,000 because finding money is considered a nontaxable treasure trove.

c. a. Jessica will have to pay tax on the $5,000 because the money is taxable in the year the money is found - not in the year the desk was purchased.

d. Jessica will have to pay tax on the $5,000 but will be entitled to capital gain treatment instead of ordinary income treatment.

e. c and d.