QUESTION $24$

Cathy received land $as$ a gift from the grandfather. $At$ the time $of$ the gift, the land had a $FMVof$ $$105,000$ and $an$ adjusted basis $of$ $$85,000to$ Cathy's grandfather. The grandfather did not

have any gift taxes due. One year later, Cathy sold the land for $$105,000.$ What was her gain $(or$ loss$)on$ this transaction?

$A.No$ gain $or$ loss

$B.$ $$20,000$ gain

$C.$ $$5,000$ loss

$D.$ $$25,000$ gain