In September of last year, Joanne purchased a piece of fine china from her Aunt Louise for $5,000. At the time, this china had a true fair market value of $30,000. Louise who purchased the china four years ago for only $4,000 (its fair market value at the time), was originally just going to give it to her for nothing. Joanne, however, insisted on paying her and she reluctantly agreed. No gift tax resulted from this transfer from Louise to Joanne. Louise became furious with her, however, when she found out that to get her hands on some quick cash, she sold the crystal less than a month later and received $28,000 for it. As a result of Joanne's sale of the crystal, she: a. Has a realized gain of $23,000. This gain is not recognized since there is a gift component. b. Has a realized gain of $24,000. This gain is not recognized since there is a gift component. c. Has a realized gain of $23,000. This gain is recognized. d. Has a realized gain of $24,000. This gain is recognized. e. None of the above