of the mother's death was $900,000. The mother's 12) Mrs. Smith inherited real estate from her mother. The mother's basis in the real es $382,000, and the fair market value at the date of the mother's death was $900 taxable estate was only $2.4 million, so the estate did not owe any feder Mrs. Smith sold the real estate for $875,000. Compute her gain or lo A) SO B) $25,000 loss C) $493,000 gain D) $875,000 gain mpute her gain or loss recognized on sale