Gaye Torrs bought an old drum for $ at an auction. Later, she realized there was something loose inside. She shook the
drum, and a jewel worth $ rolled out. Gaye showed the drum to her neighbor who collects musical instruments. The
neighbor discovered that the drum was the one used on television by Bobby Joe, a famous country singer It was worth
$ Bobby Joe died later that year, and the value of the drum increased to $ Which of the following items must
Gaye include in her gross income for the year?
A The value of the jewel, the value of the drum when she bought it and the appreciation of the drum up to its
current fair market value.
B The value of the jewel.
C The value of the drum when she bought it
D The appreciation on the drum.
