Match the transaction to its classification as a capital gain or loss or an ordinary gain or loss.

Taxpayer is a furniture store with $100,000 in accounts receivable. The furniture store sells its accounts receivable to a collection agency for $60,000. The tax base of accounts receivable is $0.

a) capital loss or gain

b) ordinary loss or gain

Taxpayer is an individual who purchased a home in 20X1 for $100,000. The house was the main residence of the Taxpayer until the day of its sale in 20X3. The house was sold for $150,000.

a) capital loss or gain

b) ordinary loss or gain

Taxpayer is an individual who purchased a home in 20X1 for $100,000. The house was the main residence of the Taxpayer until the day of its sale in 20X3. The house was sold for $75,000.

a) capital loss or gain

b) ordinary loss or gain

Contributor is an individual who collects works of art. In 20X1, he purchased a painting by a world-famous artist for $15,000. In 20X3, Taxpayer sold said work of art for $35,000.

a) capital loss or gain

b) ordinary loss or gain

Taxpayer is dedicated to the sale of electronic goods. Within your inventory, you have equipment that is more than one (1) year old which is no longer selling at expected levels. That inventory cost him $75,000 and has an enclosed suggested retail price of $125,000. However, a business in South America offered him $60,000 for such inventory, which is in high demand in his country. Taxpayer accepted the offer and sold him the inventory.

a) capital loss or gain

b) ordinary loss or gain