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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)

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