In 2018, Chris sold a painting to Bernie for \(\$ 40,000\). Chris received \(\$ 10,000\) in 2018 and will receive \(\$ 30,000\) in 2019 . Chris's bought the painting in 2014 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 2019 . The painting was worth \(\$ 45,000\) when repossessed.

What is Chris's recognized gain in 2018?

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 \(=\$ 45,000\)