Question: Gus, a single man, owned a building with a fair market value of $ 2 , 0 0 0 , 0 0 0 . Gus's

Gus, a single man, owned a building with a fair market value of $2,000,000. Gus's adjusted basis in the building was $1,000,000. This year, Gus agreed to sell the building to his adult son, Kal, for $1,300,000. Gus made no other gifts or sales to Kal this year. What is the amount of Gus's taxable gift?
Gus has made a taxable gift of $300,000.
Gus has made a taxable gift of $685,000.
Gus has made a taxable gift of $700,000.
Gus has made a taxable gift of $2,000,000.
Gus, a single man, owned a building with a fair

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