Vicki Sells a Parcel of Land to Her Son,Dan,for $40,000

Essay

Vicki sells a parcel of land to her son,Dan,for $40,000.Vicki's adjusted basis is $45,000.Two years later Dan gives the land to his fiancée,Karen.At that date,the land is worth $47,000.No gift tax is paid.Since Dan is going to be stationed in the U.S.Army in Germany for 3 years,they do not plan on being married until his tour is completed.Six months after receiving the land,Karen sells it for $48,000.Calculate Karen's realized and recognized gain or loss.