After a lengthy career as successful stock market analyst, Ross Howard lost his job. While he has searched extensively for a new position for more than a year, he has been unable to find suitable employment. Given this, he begins to sell some of his prized possessions. The following transactions occur during the current year.

*His beloved collection of limited edition fountain pens had total cost of 42,000.however the proceed from their sale to another collector the sole interested party amounted to only 13,000. These pens were used largely for decorative purpose. They were all displayed on his work desk and he always carried one prominently in the pocket of his jacket or shirt in order to impress clients.

*His first edition of Hemingways the sun also rises had cost 12,000 and sold for 31,000

*He had inherited a small Paul borduas painting from his grandfather. The painting had cost his grandfather 1,500. At the time of the bequest its fair market value had increased to 128,000. It is sold privately by Howard for 132,000.

*For several years he has driven a Bentley flying spur which had scot 185,000. It is sold for 64,000

*His antique Chris craft race boat had cost 45,000 several years ago.it is sold for 62,000

Required: indicate the tax consequences of each of these dispositions. In addition, indicate the total amount that will be included in Mr. Howards net income for tax purposes, as well as any carry over amounts that can be used in previous of subsequent years.

Also provide details of your treatment of the gain/ loss for each item below.

Explanation: