Teresa purchased a necklace for $100 in 1964. In 2014, Teresa gave the necklace to her granddaughter, Lindsey.
At the time of the gift, the necklace had an appraised value of $850. In 2016, Lindsey sold the necklace for $1,200.
What is the amount and character of Lindsey's gain from this sale?
a) $350 ordinary gain.
b) $350 long-term capital gain.
c) $1,100 ordinary gain.
d) $1,100 long-term capital gain
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Home » Business » Teresa purchased a necklace for $100 in 1964. In 2014, Teresa gave the necklace to her granddaughter, Lindsey. At the time of the gift, the necklace had an appraised value of $850. In 2016, Lindsey sold the necklace for $1,200.