What income, if any, must Karen recognize as a result of her purchase

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 57P
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Karen purchased land valued at $100,000 with virtual currency she had been given by her father who purchased it for $60,000. The virtual currency had a value on the date of the gift equal to $85,000 (i.e., a taxable gift of $69,000) on which he paid a $17,940 gift tax. What income, if any, must Karen recognize as a result of her purchase
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