1A. On February 2, 2016, Alexandra purchases a personal computer for her home. The computer costs $2,800. Alexandra uses 80% of her time in her accounting business and the remaining 20 percent of the time for various personal uses.

Calculate Alexandra's maximum depreciation deduction for 2016 for the computer, assuming half-year convention and she does not use bonus depreciation or make the election to expense.

1B. During 2016, Tom sold Sears stock for $10,000. The stock was purchased 4 years ago for $13,000. Tom also sold Ford Motor Company bonds for $35,000.

The bonds were purchased 2 months ago for $30,000. Home Depot stock, purchased 2 years ago for $1,000, was sold by Tom for $2,500. Calculate Tom's net gain or loss, and indicate the nature of the gain or loss.