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Question - A taxpayer received a parcel of land as a gift. At the time of the gift, the land had a FMV of $10,000. The donor's adjusted basis was $12,000. Calculate gain/loss for each of the following situations:
Situation # 1: Taxpayer sells the land for $14,500.
Situation #2: Taxpayer sells the land for $9,500.
Situation #3: Taxpayer sells the land for $10,500.
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