In 2015, Harold purchased a classic car that he planned to restore for $12,000. However, Harold is too busy to work on t
Posted: Sun Jul 03, 2022 4:15 pm
In 2015, Harold purchased a classic car that he planned torestore for $12,000. However, Harold is too busy to work on the carand he gives it to to his daughter, Julia in 2020. At thattime, the fair market value of the car had declined to $10,000.Harold paid no gift tax on the transaction. Julia completes some ofthe restoration herself with out of pocket costs of $5,000. Shelater sells the car for $30,000. What is Julias recognized gain orloss on the sale of the car?
A- $0
B- $13,000
C- $15,000
D- $18,000
A- $0
B- $13,000
C- $15,000
D- $18,000