Bill received an acre of land as a gift from his father. At the time of gift, the land had a fair market value of $700,000. His

father purchased the land four years ago for $800,000. Assume Bill sold the land one week after receiving the gift.

If Bill sold the land for $850,000, what would be his taxable gain or loss on the sale?

Gain of $50,000

If Bill sold the land for $550,000, what would be his taxable gain or loss on the sale?

Loss of $150,000

If Bill sold the land for $730,000, what would be his taxable gain or loss on the sale?

No gain or loss