1. Gene Parmesan sold a computer used in his business for $4,000 on Dec. 12, 2019. He purchased the computer on Mar. 3, 2017 for $3,500 and had claimed a total of $2,156 in depreciation deductions. What is the amount and character of Genes gain on the sale of the computer?

   		$2,156 ordinary gain, $500 unrecaptured 1250 gain.
   		$2,656 capital gain.
   		$2,156 ordinary gain, $500 1231 gain
   		$1,344 ordinary gain, $1,312 unrecaptured 1250 gain.

1. Erica had the following capital gains (losses) from the sale of her investments: $5,000 LTCG, $22,000 STCG, ($8,000) LTCL, and ($14,000) STCL. What is the amount and nature of Erica's capital gains and losses?

   		$3,000 net long-term capital loss
   		$8,000 net short-term capital gain
   		$5,000 net short-term capital loss
   		$5,000 net short-term capital gain