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Abigail purchased a ring for $95 in 1971. In 2015, Abigail gave the ring to her...

Abigail purchased a ring for $95 in 1971. In 2015, Abigail gave the ring to her granddaughter, Tiffany. The ring had an appraised value of $925. In 2018, Tiffany sold the ring for $1175. The amount and character of Tiffany's gain from this sale is ___________.

A) $1080 long term capital gain

B) $1080 ordinary gain

C) $250 long term capital gain

D) $250 ordinary gain

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Answer #1

Gain from the sale= Sale consideration - Cost to the previous owner

= 1175 - 95

= $1080

Option , A) $1080 long term capital gain

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