Nat Is a Salesman for a Real Estate Developer $\begin{array}{ll}\$ 0 &&& \$ 75,000 \\\end{array}$

Short Answer

Nat is a salesman for a real estate developer. His employer permits him to purchase a lot for $75,000. The employer's adjusted basis for the lot is $45,000, and its normal selling price is $90,000.
What is Nat's recognized gain and his basis for the lot?
Recognized gain Basis
A) $\begin{array}{ll}\$ 0 &&& \$ 75,000 \\\end{array}$
B) $\begin{array}{ll}\$ 0 &&& \$ 90,000 \\\end{array}$
C) $\begin{array}{ll}\$ 15,000 & \$ 75,000 \\\end{array}$
D) $\begin{array}{ll}\$ 15,000 & \$ 90,000 \\\end{array}$
E) $\begin{array}{ll}\$ 30,000 & \$ 105,000\end{array}$