GANDOO received a gift of income-producing property with an adjusted basis of $49,000 to the donor and fair market value of $35,000 on the date of gift. No gift tax was paid by the donor. GANDOO subsequently sold the property for $31,000. What is the recognized gain or loss?
a. $0
b. ($4,000)
c. ($10,000)
d. ($18,000)
e. None of the above
A CROWN owns a tract of undeveloped land (adjusted basis of $145,000) which he sells to his son, GANDOO, for its fair market value of $105,000. What is CROWN;s recognized gain or loss and GANDOO's basis in the land?
a. $0 and $105,000.
b. $0 and $145,000.
c. ($40,000) and $105,000.
d. ($40,000) and $145,000.
e. None of the above.