David inherited a mountain cottage from his grandmother. The cottage was worth $66,000 at the...
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Accounting
David inherited a mountain cottage from his grandmother. The cottage was worth $66,000 at the time and had a basis to the grandmother of $24,000. Estate taxes of $13,200 were paid on the cabin. After one summer, it was clear that David would be unable to use the cottage enough to justify keeping it, and he sold it for $60,000. How much is Davids gain or loss on this sale?
Multiple Choice
$6,000 loss
$22,800 gain.
$19,200 loss
$0
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