Teresa, a self-employed consultant, traded in her old computer for a new model. In addition to trading in her old computer, Teresa paid $7,000 for the newer model. Other relevant information about the trade-in is shown below: Cost of original computer traded in $8,000 Adjusted basis of original computer at $1,000 date of trade-in List Price (FMV) of new computer $10,000 Trade-in allowance (FMV) for old computer $ 3,000 Teresa's basis in the new computer is: 1) $1,000 2) $7,000 3) $ 8,000 4) $ 10,000 5) none of the above