1. Having made no prior taxable gifts during the current year, D transferred title to her car to her 16 year old son, saying, [t]his is for you. Now, I wont have to drive you everywhere. The car had a value of $21,000 at the time of the transfer. D asks you whether she should file a federal gift tax return reporting the transaction. (Assume that D is not married.)

a. What would you advise her?

b. What would be the result if D sold the car to her son for $12,000?

c. What would be the result if D sold the car to her son in return for her sons agreement to pay $12,000 to his sister (Ds daughter), a 21 year old college student whose tuition D otherwise was paying?