Dale gave property with a basis of $16,000 to Sarah when it had a FMV of $12,000.Sarah later sold the property for $22,000 resulting in a recognized gain of

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Sarah's recognized gain is calculated by subtracting the property's basis from the sale price. Since the basis is $16,000 and the sale price is $22,000, the recognized gain is $22,000 - $16,000 = $6,000.

Dale Gave Property with a Basis of $16,000 to Sarah