In December 2016, Emy was lucky enough to be in the audience of the Ellen show when everyone in the audience was given a brand new car worth $24,000 retail value. Emy uses public transportation because she thinks all other drivers are crazy people, so she does not need the car but accepts it anyway. She gives it to her friend Art who does drive but already has two cars. Art then sells the car for $22,000 in cash on December 20, 2016, and splits the proceeds with Emy. How much taxable income do Emy and Art each have from the car transactions?

$11,000 and $11,000

$24,000 and $22,000

$0 and $22,000

$24,000 and $0