Mr. and Mrs. Trent divorced last year. Pursuant to the divorce, Mr. Trent transferred marketable securities (FMV $100,000; basis $67,000) to Mrs. Trent. This year, Mrs. Trent sold the securities for $112,000. Which of the following statements is true?
A. Mrs. Trent recognized a $45,000 gain on sale this year.
B. Mrs. Trent recognized a $12,000 gain on sale this year.
C. Mrs. Trent recognized no income last year and no gain on sale this year.
D. Mrs. Trent recognized $100,000 income last year.
Answer: A
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Answer the following statement true (T) or false (F)