Reference no: EM131781184

Problem

In December 2013, your client, a single individual operating a CPA firm as a sole proprietorship sold the following business assets:

Property Acquisition date Sales Price Original Cost Cost Recovered

Property	Acquisition date	Sales Price	Original Cost	Cost Recovered
39 year property	2/2011	$150,000	$140,000	$8,150
3 year property	5/2011	18,000	20,000	15,140
5 year property	9/2011	15,000	40,000	17,900
7 year property	10/2011	120,000	100,000	38,250
IBM stock	12/2011	2,000	1,000	0

The only other business assets ever sold were in 2010, resulting in a net loss of $2,000.

Assuming that there are no other transactions and the cost recovery for each asset is correct as of its sale date, determine the amount and character (including any relevant tax rates) of your client's recognized gain or loss from the above transactions.