G Inherited a Late Model Mercedes Benz from His Great-Aunt

question 58

Multiple Choice

G inherited a late model Mercedes Benz from his great-aunt last year.The auto was worth $28,000 when his aunt died, and G sold the auto two months later for $30,000.The aunt had purchased the auto three months before her death for $38,000.How much gain (or loss) does G recognize on this sale?

• A)$0
• B)$2,000
• C)($10,000)
• D)($8,000)