Derek gave (as a gift) property with a basis of $16,000 to Sarah when it had a FMV of $12,000. Sarah later sold the property for $10,000. What was Sarah's gain (loss) on the sale? Select one: OA. ($12,000) loss O B. $0 O C. ($2,000) loss OD. ($6,000) loss
Derek gave (as a gift) property with a basis of $16,000 to Sarah when it had a FMV of $12,000. Sarah later sold the property for $10,000. What was Sarah's gain (loss) on the sale? Select one: OA. ($12,000) loss O B. $0 O C. ($2,000) loss OD. ($6,000) loss
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 2CPA: Susie purchased her primary residence on March 15, year 4, for 550,000. She sold it on October 15,...
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Transcribed Image Text:Derek gave (as a gift) property with a basis of $16,000 to Sarah when it had a FMV of $12,000.
Sarah later sold the property for $10,000. What was Sarah's gain (loss) on the sale?
Select one:
OA. ($12,000) loss
O B. $0
O C. ($2,000) loss
OD. ($6,000) loss
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