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Question 24 Larry purchased real property for $25,000 and sold it the next...

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Accounting

Question 24
Larry purchased real property for $25,000 and sold it the next year to Kim, Larry's
child, for the fair market value of $18,000. Later, Kim sold the property to Harry,
who is not related to Kim or Larry, for $25,000. What amount, if any, should be
recognized by Kim?
$2,000 loss
$7,000 loss
$5,000 gain
So
$7,000 gain
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