During the Current Year, Mrs

Multiple Choice

During the current year, Mrs.Mayhew received a used computer as a gift from her son for her personal use.The computer has a current fair market value of $350 and cost her son $850.He took $400 of depreciation deductions while it was used in his business.Mrs.Mayhew uses the computer for several years and then sells it for $200.What is the amount and type of gain or loss that Mrs.Mayhew recognizes on the sale?

A) $0 gain or loss
B) $150 Section 1245 loss
C) $150 Section 1231 loss
D) $250 Section 1231 loss