Reference no: EM132660188

Problem - Communications, Barbella purchased a wedding ring for $15 at a yard sale in May. She thought the ring was costume jewelry, but it turned out to be a real diamond ring. She is not in the business of buying and selling anything. She researched the ring on the internet and discovered that it was worth at least $1,000. She sold it on an internet auction site for $1,100 in July. Was the ring a capital asset? What were the amount and nature of the gain or loss from its sale by Barbella? Prepare your answer in the form of an e-mail communication between you as a staff person of the Fuchsia CPA Firm LLP and your boss, Maria Hernandez, CPA.