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

Question

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The Answer of 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

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