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ors in business for herself, Daisy retirer pe in a similar field and is opening...

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Accounting

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ors in business for herself, Daisy retirer pe in a similar field and is opening up her 5 After 35 years in bu desk to her niece, Molly, wh practice. Daisy originally paid $12.00 it to Molly. Molly used the desk redecorate her office. How w olly, who recently completed her degree in a similar field and wid $12,000 for the desk, and it was fully depreciated by the time ed the desk for two years, and then sold it (for $6,000) when she decided to fice. How will Molly treat the proceeds from the sale of the gift for in received the desk as a gift, there is no need to pay taxes on the proceeds from purposes? a. Since Molly received the desk the sale. b. Since the desk was given to M the desk was given to Molly when it was fully depreciated, it is "loss property" and the $6.000 proceeds will not be taxable because it fell between Molly's gain basis and loss basis in the transaction. Molly will recognize $6,000 of ordinary income on the sale. d. Molly will recognize $6,000 of long-term capital gain on the sale

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