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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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