Indicate Person A’s gain basis and loss basis.

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Chapter 14, Problem 26CE

To determine

Indicate Person A’s gain basis and loss basis.

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Luciana, a nonshareholder, purchases a condominium from her employer for $85,000. The fair market value of the condominium is $120,000. What is Luciana's basis in the condominium and the amount of any income as a result of this purchase? Luciana's basis in the condominium is $_____ and she reports $______as ____. .

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