$41.$ Communications

LO$\mathrm{.}2.,4$ Barbella purchased a wedding ring for $\backslash (\backslash$$ $15\backslash )$ at a yard sale in May. She thought the ring was costume jewelry, but it turned out to be a real diamond ring. She is not in the business of buying and selling anything. She researched the ring on the internet and discovered that it was worth at least $\backslash (\backslash$$ $1,000\backslash ).$ She sold it on an internet auction site for $\backslash (\backslash$$ $1,100\backslash )$ in July. Was the ring a capital asset? What were the amount and nature of the gain or loss from its sale by Barbella? Prepare your answer in the form of an email communication between you as a staff person of the Fuchsia CPA Firm LLP and your boss, Maria Hernandez, CPA. Assume that her e$-$mail address is mhernandez@fuchsiacpas.com. Maria referred the situation to you and is aware of the facts and the questions you should answer.