Problem 8 Personal Property Dispositions

After a lengthy career as a successful stock market analyst, Phil A. Mignon 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 has begun to sell some of his prized possessions. The following transactions occur during the current year: a. His beloved collection of limited edition stamps had a total cost of $44,000. He sold them to another collector for $13,000. b. His first edition of Hemingways The Sun Also Rises (there is only one copy in the world!) had cost $100 and sold for $31,000. c. For several years he has driven a Bentley (car) which had cost $185,000. It was sold for $64,000. d. His antique race boat had cost $45,000 several years ago. It sold for $62,000.

REQUIRED. Indicate the tax consequences of each of these dispositions. Indicate the total amount that will be included in Mr. Mignons Net Income For Tax Purposes, as well as any carry over amounts that can be used in previous or subsequent years. Inclusion in Net Income for Tax Purposes _________________________ Carryover Losses Available (If Applicable Specify type of loss):