Taxpayer works for an accounting firm. Every year the firm replaces the three oldest desks with three new desks. The accounting firm allows the employees to purchase the old desks. This year Taxpayer purchased one of the desks. What are the tax consequences to her from the purchase under the following alternative scenarios:

a. The accounting firm sells the old desks for $100 each. The firm is unaware that each desk is actually worth $1,000.

b. The accounting firm sells the old desks for $100. The firm is aware that each desk is actually worth $1,000.

c. The accounting firm sells the old desks for $100. The firm believes each desk is worth $300, but each is actually worth $1,000