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Noelle received dining room furniture to use in her house as a gift from her friend, Jane. Jane's adjusted basis was $9,200 and the fair market value on the date of the gift was $7,000. Noelle decided she did not need the furniture and sold it to a neighbor six months later for $6,500. What is her recognized gain or loss?

a. $0.

b. ($500).

c. ($2,700).

d. $6,500.

e. None of the above.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M961917

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