Three years ago, Katie remodeled her home. Rather than discarding some shelving units that were in her home, she moved them to the employee lounge of the business that she owns. Her original cost (basis) in the shelves was $3,500. The fair market value of the shelves when she converted them to business use was $2,500. Kane has taken depreciation on the shelves of $300. She sold the shelving units this year for $3,600. What is the amount of her basis and the amount of the gain or loss recognized on the sale of the shelves? O Katie's basis is $3,200 and her gain is $400. O Katie's basis is $2,200 and her gain is $1,400. O Katie's basis is $2,200 and her gain is $100. O Katie's basis is $3,500 and her gain is $100.

Thice years ago, Katie remodeled her home. Rother than discarding some shelving units that were in her home, she thoved them to the employee lounge of the business that she owns. Her oripinal cost (basis) in the shelves was $3,500. The fair market value of the shelves when she corverted them to business use was $2,500kds has taken depreciation on the shelves of $3,00. She sold the shelving units this year for $3,600. What is the amount of her bosis and the amount of the gain of loss recognized on the sale of the shelves? Katie's basis is $3.200 and her gain is $400 Kolie's bsus is $2,200 and her gain is $1,400 Kotie's basis is $2,200 and her gain is $100 Katie's basis is $3,500 and her gain is $100