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Sophia (30% ordinary tax rate) sells her business-use computer that she purchased 3 years ago (FMV = 1,000; Original Basis = 2,000). The computer had

  1. Sophia (30% ordinary tax rate) sells her business-use computer that she purchased 3 years ago (FMV = 1,000; Original Basis = 2,000). The computer had a total of 600 in accumulated depreciation at the time of sale. What is the total after-tax cash flow from this sale?

  1. -400
  2. +1,120
  3. -250
  4. +460
  5. -850

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