Reference no: EM132614007

Mike sold the following assets during the current year:

                                     Sales Price                       Cost

Painting                      $2,500                         $ 800

Stamp collection            600                          1,200

Outboard motor              900                           100

Antique desk                   1,300                       1,950

Problem 1: Which one of the following amounts represents his taxable capital gain, net of allowable capital losses, for tax purposes during the current year?

Option 1: $325.

Option 2: $750.

Option 3: $650.

Option 4: $625.