Clarissa Carter sells Whitehall to her best friend for $120,000, her estimated fair market value (FMV) of the property. On a subsequent audit, the IRS determines that t consequences? he FMV of Whitehall is $195,000. What are the gift tax Clarissa has made a gift of $75,000, which is the difference between the FMV and the sales price Clarissa intended the transaction to be a sale and there was no donative intent; thus, a gift was not made. . Clarissa should report additional taxable income of $75,000, but there are no gift tax consequences. C. O D. The sale was considered to be an arm's-length transaction; therefore, a gift was not made