Multiple Choice
Sarah purchased a diamond bracelet for $3,000 while vacationing in Hong Kong during 2008.Sarah gives the bracelet to her daughter Amy when she graduates from college in 2016.The bracelet is appraised at $8,000 on that date.In October 2016,Amy sells the bracelet for $9,000.What is the amount of gain Amy should recognize on the sale?
A) No gain or (loss) is recognized
B) $1,000
C) $4,000
D) $5,000
E) $6,000
Correct Answer:
Verified
Correct Answer:
Verified
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