(Answered) Question - nigel received a land rover from his mother as a

Accounting

Question - Nigel received a Land Rover from his mother as a gift. His mom had purchased the Land Rover two years earlier for $65,000, but its fair market value at the date that she made the gift to him was only $50,000. No gift tax was paid by his mom at the time of the gift. If Nigel sells the Land Rover for $70,000, what, if any, gain or loss will he recognize on the sale?

A) No gain or loss.

B) ($5,000) loss.

C) $20,000 gain.

D) $5,000 gain.

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