Question
George sold a piece of land he inherited from his father last year for $18,000. His father purchased the land for $8,000 in 2003. The
George sold a piece of land he inherited from his father last year for $18,000. His father purchased the land for $8,000 in 2003. The land had a FMV of $16,500 at the time of his dads death. George also sold a gold watch he received from his father as a gift for $3,000. The watch had been in the family for generations. George had the watch appraised, and it was valued at $2,500 when his father died. George does not have any information as to how much was originally paid for the watch. What would be the amount of Georges total capital gain?
a) $ 2,000
b) $ 4,500
c) $13,000
d) $10,500
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