1. Which of the following is a capital asset? Explain. a. a gold ring received as a gift b. a personal automobile c. accounts receivable obtained in the ordinary course of business d. shares of stock in ABC Corp. e. a building owned and used by ABC Corp. f. business cars and trucks owned and used by ABC corp. g. a copyright on a book written and owned by the author.

2. Julie sold her house. At the time of purchase, she paid $50,000 to the seller and $5000 in closing costs. Five years later, she paid $20,000 to add a room onto it. The purchaser of Julie's house gave Julie $70,000 in cash. Because the purchaser could not get a mortgage, he also gave Julie a car valued at $10,000 and agreed to pay the remaining $20,000 mortgage on Julie's house. What is Julie's realized gain or loss on the sale?