In 2019, Chris sold a painting to Bernie for

$40,000. Chris received $10,000 in 2019 and will receive $30,000 in 2020. Chris bought the painting in 2015 for $15,000.

Bernie did not pay Chris $30,000 when it was due, and after numerous attempts to collect (and $1,000 in expenses), Chris repossessed the paining in 2020. The painting was worth $45,000 when repossessed.

What is Chris's recognized gain in 2019?

a. $25,000

b. $10,000

c. $6,250 What are the results of the repossession to Chris?

a. $45,000 LTCG; basis = $45,000

b. $33,750 LTCG; basis = $45,000

c. $33,750 LTCG; basis = $44,000

d. $32,750 LTCG; basis = $45,000