85) Larry purchased real property for $20,000 and sold it the next year to Kim, Larry's child, for the fair market value of $12,000. Later, Kim sold the property to Harry, who is not related to Kim or Larry, for $15,000. What amount, if any, should be recognized by KIm?

a. $5,000 loss

b. $3,000 loss

c. $0

d. $3,000 gain

21) The 3.8% tax on net investment income applies to all taxpayers who have net investment income for the year. TRUE or FLASE