Question: In May 2 0 2 2 , Automatic, Inc. sold land with a basis to Automatic of $ 1 0 0 , 0 0 0

In May 2022, Automatic, Inc. sold land with a basis to Automatic of $100,000, to Jack Jones, its 60% shareholder, for $80,000. In July, Jack sold the land to an unrelated party for $110,000. What is the amount of Jack's recognized gain?
1.$0
2. $10,000
3.520,000
4.$30,000

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