Which scenario does NOT create a taxable gain in a bargain sale?

In a bargain sale scenario, the focus is on the relationship between the selling price, the fair market value (FMV) of the asset, and the original cost basis of the asset. When the selling price is equal to the original cost, there is no realized gain or loss from the sale. The gain is computed based on the selling price compared to the original cost; if they are the same, it results in a zero gain, meaning that there is no taxable gain triggered from that sale.

Option D illustrates a unique situation where the asset is sold for exactly what it was originally purchased for, thus eliminating any gain that would normally be taxed. All other options involve scenarios that either create potential gains or do not necessarily eliminate the possibility of a taxable event.

For instance, when the selling price exceeds the original cost, it results in a taxable gain. Selling for less than the FMV can create a situation where a portion of the bargain sale may exceed the original cost, leading to a taxable situation. Retaining ownership of the asset does not address the selling price in relation to the cost or FMV and is not relevant to determining tax implications in this context. Thus, selling an asset for an amount equal to its original cost is the scenario that