Question - Noelle received dining room furniture to use in her house as a gift from her friend, Jane. Jane's adjusted basis was $9,200 and the fair market value on the date of the gift was $7,000. Noelle decided she did not need the furniture and sold it to a neighbor six months later for $6,500. What is her recognized gain or loss?
a. $0.
b. ($500).
c. ($2,700).
d. $6,500.
e. None of the above.