Question: In 2007, Iris King bought a diamond necklace for her own use, at a cost of $10,000. In 2011, when the fair market value was

In 2007, Iris King bought a diamond necklace for her own use, at a cost of $10,000. In 2011, when the fair market value was $12,000, Iris gave this necklace to her daughter, Ruth. No gift tax was due. This diamond necklace is a

a. Capital asset.

b. Section 1231 asset.

c. Section 1245 asset.

d. Section 1250 asset.

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