"-33. David owns property with a current fair market value (FMV) of $60,000 and an adjusted basis of $80,000. He has an AGI of $200,000. He plans to donate the property to charity. Which of the following statements regarding the income tax implications of David's plan is(are) CORRECT? 1. If David donates the property to charity, he cannot recognize a capital loss of $20,000. 2. If David donates the property to charity, he can deduct $80,000 as a charitable deduction. 3. If David sells the property for $60,000 to a third party in an arms-length transaction, he can recognize a capital loss of $20,000 and donate the $60,000 cash received to the charity. A. 1 and 2 B. 1 and 3 C. 2 and 3 D. 1, 2, and 3