What is annie gain or loss when she sells the car


Question: Annie provides several business leads to Bobby that proved quite successful. In appreciation of the leads, Bobby gives Annie a $30,000 Cadillac (a car). Annie properly included the value of the Cadillac in her gross income. However, after two years of driving the Cadillac as her primary personal-use vehicle, Annie decides to sell it for $25,000. What is Annie's gain or loss when she sells the car?

 

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