In 2015, Harold Purchased a Classic Car That He Planned

question 78

Multiple Choice

In 2015, Harold purchased a classic car that he planned to restore for $12,000.However, Harold is too busy to work on the car and he gives it to his daughter Julia in 2019.At that time, the fair market value of the car had declined to $10,000.Harold paid no gift tax on the transaction.Julia completes some of the restoration herself with out-of-pocket costs of $5,000.She later sells the car for $30,000.What is Julia's recognized gain or loss on the sale of the car?

• A)$0
• B)$13,000
• C)$15,000
• D)$18,000