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Dan sold a gold pocket watch for $ 1 2 , 0 0 0 that he had inherited from his Uncle John several years ago.

Dan sold a gold pocket watch for $12,000 that he had inherited from his Uncle John several years ago. John had originally purchased it for $2,000 and it had a $5,000 FMV at the time of his death. If Dans AGI is $900,000, how will it be reported on his tax return?

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