Shontelle received a gift of income-producing property with an adjusted basis of $50,000 to the donor and fair market value of $40,000 on the date of gift.Gift tax of $6,000 was paid by the donor.Shontelle subsequently sold the property for $45,000.What is the recognized gain or loss?
A)$5,000.
B)$4,000.
C)($5,000).
D)($11,000).
E)None of the above.

Question

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The Answer of Shontelle received a gift of income-producing property with an adjusted basis of $50,000 to the donor and fair market value of $40,000 on the date of gift.Gift tax of $6,000 was paid by the donor.Shontelle subsequently sold the property for $45,000.What is the recognized gain or loss?
A)$5,000.
B)$4,000.
C)($5,000).
D)($11,000).
E)None of the above.

Shontelle Received a Gift of Income-Producing Property with an Adjusted