D is corrent. The requirement is to determine the amount of gain recognized by Thompson resulting from the sale of appreciated property received as a gift. A donee’s basis for appreciated property received as a gift is generally the same as the donor’s basis. Since Wilson had a basis for the property of $2,400 and Thompson sold the property for $5,000, Thompson must recognize a gain of $2,600.
A is incorrect. The requirement is to determine the amount of gain recognized by Thompson resulting from the sale of appreciated property received as a gift. A donee’s basis for appreciated property received as a gift is generally the same as the donor’s basis. Since Wilson had a basis for the property of $2,400 and Thompson sold the property for $5,000, Thompson must recognize a gain of $2,600.
A is incorrect. The requirement is to determine the amount of gain recognized by Thompson resulting from the sale of appreciated property received as a gift. A donee’s basis for appreciated property received as a gift is generally the same as the donor’s basis. Since Wilson had a basis for the property of $2,400 and Thompson sold the property for $5,000, Thompson must recognize a gain of $2,600.
A is incorrect. The requirement is to determine the amount of gain recognized by Thompson resulting from the sale of appreciated property received as a gift. A donee’s basis for appreciated property received as a gift is generally the same as the donor’s basis. Since Wilson had a basis for the property of $2,400 and Thompson sold the property for $5,000, Thompson must recognize a gain of $2,600.
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