Tanisha buys a sculpture from a collector for resale in her gallery for $8,400. she sold it 15 months later for $12,500. what are the nature and amount of the gain on the sale of the sculpture?

The amount of gain on the sale of sculpture is $4100 and its nature is considered as 'ordinary income'.

Step-by-step explanation:

Since we have given that

Cost price of gallery = $8400

Selling price of gallery = $12500

So, Gain on the sale of the sculpture would be

Selling price - Cost price

Hence, the amount of gain on the sale of sculpture is $4100 and its nature is considered as 'ordinary income'.

7. d. 64

8. i. 32

9. c. 125

10. j. none of the above

11. d. 81

12. i. 216

13. e. none of the above

14. g. 240

15. e. none of the above

16. g. 32

17.   e. none of the above