Several years ago, Steve gave his nephew Rashan his coin collection valued at $12,000 with a basis of $3,000. Steve’s intent was to ensure that Rashan has money for college. Rashan is now a senior in high school, and the coins are worth $16,000. Rashan is considering selling some of the coins to put toward his first semester’s tuition. His marginal tax rate is 15%and will remain at that rate throughout his college years because of part-time work. Steve asks Rashan to give the coins back to him and tells Rashan not to worry about it. Steve is elderly, and his will states that Rashan gets the coin collection. Rashan is confused. He can cover his tuition, fees, and other expenses for the first two years from savings and student loans. But he does not understand what Steve is trying to accomplish by asking for the coins. Research this situation and explain all the tax ramifications to Rashan.