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In February of this year, Mary received an antique gold bracelet as a birthday gift from a great aunt who had purchased the bracelet as
In February of this year, Mary received an antique gold bracelet as a birthday gift from a great aunt who had purchased the bracelet as a young girl for $500. At the time Mary received the gift, it was worth $2,000. In November, Mary was shopping in a jewelry store and just happened to be wearing the bracelet. Because the bracelet matched an antique necklace that the jeweler had on sale and he could sell the two pieces as a set, the jeweler offered Mary $2,5000 for the bracelet, which she accepted. What is the character of the gain that Mary realized on the sale of the bracelet? a. $2,000 ordinary income b. $2,000 short-term capital gain c. $2,000 long-term capital gain d. $1,500 long-term capital gain and $500 short-term capital gain
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