Nancy had a machine that she has used in her business. She purchased it for $4,800 and has fully depreciated it. (i.e. $4,800 of depreciation taken; A/B is $0) a. If she gives the machine to her son, who operates a similar business, and he sells it for $6,000, what is the amount and character of the gain to the son? b. If she dies and transfers the machine to her son by will, and he sells it 1 month later for $6,000 (FMV on the date of her death is $5,700) what is the amount and character of his gain?

Answer rating: 100% (QA)

Calculating GainLoss for Nancys Son Part a Gift Scenario Basis for the son When receiving a ... View the full answer