CREDENCE IS A 75% SHAREHOLDER IN CLEAR WATER CORPORATION. CLEAR WATER OWNS LAND USES IN THE BUSINESS AND BOUGHT IT FOR 10,000 TWO YEARS AGO. CLEARWATER SELL THE LAND TO CREDENCE, A RELATED PARTY FOR 8,000. THREE YEARS LATER CREDENCE SELL THE LAND FOR 12,000 TO AN UNRELATED PARTY. HOW MUCH GAIN WILL CREDENCE RECOGNIZE ON SALE OF THE LAND. LOSSES ON SALES TO RELATED PARTIES ARE DISALLOWED. 0 1500 2000 4000