Paul Sells Property with an Adjusted Basis of $45,000 to His

Multiple Choice

Paul sells property with an adjusted basis of $45,000 to his daughter Dean, for $38,000. Dean subsequently sells the property to her brother, Preston, for $38,000. Three years later, Preston sells the property to Hun, an unrelated party, for $50,000. What is Preston's recognized gain or loss on the sale of the property to Hun?

A) $0
B) $5,000
C) $12,000
D) ($5,000)
E) None of the above