Sadie sold Casey some of her old office furniture. She received the following from Casey for the furniture: 15 reams of copy paper (Casey sells copy paper). Each ream costs Casey $22, and he sells them to the public for $38 each; $4,200 in cash. In addition, Casey assumes the remaining $1,250 of her loan on the office furniture. Sadie spent $75 on an ad to sell the furnitture plus $25 to include pictures of the furniture in the ad.

What is Sadie's amount realized in this transaction? Please detail each amount that you include. If something is not included please explain why.

What is Sadie's realized gain or loss on this sale? Assume that Sadie had purchased the office furniture for $9,000. She has actually claimed $3,100 in cost reciovery deductions. She could have claimed a total of $4,300 in deductions but she did not realize that she could get the $1,200 deduction in the first year she owned t he furniture and never claimed that $1,200 as an expense on her taxes.