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: O A. ($12,000) loss O B. $0 OC. ($2,000) loss D. ($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: O A. ($12,000) loss O B. $0 OC. ($2,000) loss D. ($6,000) loss
Chapter1: The Individual Income Tax Return
Section: Chapter Questions
Problem 20MCQ
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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?
۵
Select one:
O A. ($12,000) loss
O B. $0
OC. ($2,000) loss
OD. ($6,000) loss
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