LO$\mathrm{.}2,4$ Barbella purchased a wedding ring for $$15$ at a yard sale in May. She thought the ring was costume jewelry, but it turned out to be a real diamond ring. She is not in the business of buying and selling anything. She researched the ring on the internet and discovered that it was worth at least $$1,000.$ She sold it on an internet auction site for $$1,100$ 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 e$-$mail 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

mbernandez@fuchsiacpas.com. Maria referred the situation to you and is aware of the facts and the questions you should answer.