Melody works in her home. She purchased a computer two years ago for $2,500. The total adjusted
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Melody works in her home. She purchased a computer 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? $200 capital gain
$200 Section 1245 recapture
$200 Section 1231gain
$460 Section 1245 recapture
None of the above
The after-tax cost of an asset. Is higher for taxpayers with higher tax rates
Is lower for taxpayers with lower discount rates
Is higher for taxpayers with lower discount rates
Is not affected by the taxpayer
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