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Larry purchased real property for $20,000 and sold it the next year to Kim, Larry's child, for the fair market value of $18,000. Later,
Larry purchased real property for $20,000 and sold it the next year to Kim, Larry's child, for the fair market value of $18,000. Later, Kim sold the property to Harry, who is not related to Kim or Larry, for $25,000. What amount, if any, should be recognized by Kim? $7,000 loss $2,000 loss $0 $5,000 gain $7,000 gain
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