Question: Bobby, a single man, owned a building with a fair market value of $2,000,000. Bobbys adjusted basis in the building was $1,000,000. This year, Bobby

Bobby, a single man, owned a building with a fair market value of $2,000,000. Bobbys adjusted basis in the building was $1,000,000. This year, Bobby agreed to sell the building to his adult son, Robby for $1,300,000. What is the amount of Bobbys taxable gift?

Group of answer choices

Bobby has made a taxable gift of $300,000.

Bobby has made a taxable gift of $685,000.

Bobby has made a taxable gift of $700,000.

Bobby has made a taxable gift of $2,000,000.

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