In June 2007, Olive Bell bought a house for use partially as a residence and partially for operation of a retail gift shop. In addition, Olive bought the following furniture:

Kitchen set and living room pieces for the residential portion

$ 8,000

Showcases and tables for the business portion

12,000

How much of this furniture comprises capital assets?

  1. $0
  2. $ 8,000
  3. $12,000
  4. $20,000