In 2012,Harold Purchased a Classic Car That He Planned to Restore

question 65

Multiple Choice

In 2012,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 2016.At this time,the fair market value of the car has 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
• E)None of the above

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Definitions:

Recessive Allele

A variant of a gene that must be inherited from both parents in order to manifest its trait, as opposed to a dominant allele where only one copy is needed for expression.

Heterozygous Individuals

Organisms that have two different alleles for a given gene, resulting in genetic variation.

Phenotypic Expression

Phenotypic expression is the observable physical and physiological traits of an organism resulting from the interaction of its genetic makeup with the environment.