Shen purchased corporate stock for $20,000 on April 10, 2013. On July 14, 2015, when the stock was worth $12,000, Shen died and his son, Mijo, inherited the stock. Mijo sold the stock for $14,200 on November 12, 2015.

What is the amount and character of Mijos gain or loss? $___________ (gain or loss)

Complete the following statements regrading the appropriate tax treatment for each sale.

1. Tobo Company buys and sells computers. Any gains from the sale of the computer are Select: (capital ordinary) gains.

2. Masahiko sells his personal computer at a $500 gain. Masahiko's gain is Selecta: (a capital or an ordinary) gain.

3. Picco Company has accounts receivable of $50,000. Because Picco needs immediate cash, it sells the receivables for $40,000 to a financial institution. If Picco is a cash basis taxpayer, it has $__________ of Select: (capital gain ordinary) income.