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In early 2013, Yuliet received a gift of a home valued at $300,000 (from Yuliet’s Uncle, Marcus). Marcus also gave Yuliet a $25,000 cash gift. During 2013, Yuliet rented the home to Anne-Emilie. As a result of the lease with Anne-Emilie, Yuliet earned net rental income of $12,000 (for 2013). What amount of income should Yuliet’s 2013 tax return include from these transactions?
a.$0
b.$12,000
c.$37,000
d.$337,000