Gary Farmer had the following Section 1231 gains and losses during the 2010 tax year:

1. Sold real estate acquired on December 3, 2002, at a cost of $24,000, for

$37,000 on January 5, 2010. The cost of selling the real estate was $500, and there was no depreciation allowable or capital improvements made to the asset over the life of the asset.

2. Sold a business computer with an adjusted basis of $20,700 that was acquired on April 5, 2004. The computer was sold on May 2, 2010, for

$14,000, resulting in a $6,700 loss.

Gary’s employer identification number is 74-8976432. Use Form 4797 on pages 8-17 and 8-18 to report the above gains and losses.