Final answer:
Sarah’s acquisition of property at an auction is considered a sale, not a gift, since it involved a transaction where she paid for the property. The term 'gift' implies a voluntary transfer without payment, which does not apply to auction purchases.
Step-by-step explanation:
The question relates to the determination of whether Sarah's acquisition of property at an auction can be considered a gift, or if it falls under another category such as a sale or an exchange. Based on the description provided, Sarah's acquisition of the property does not constitute a gift. A gift is typically defined as something given voluntarily without payment in return. In contrast, an auction involves bidding and purchasing, which indicates that the property was not received as a gift, but as a result of a transaction where consideration was exchanged, i.e., a sale.
As an example that matches the context, if 'Dare's Gift' was acquired at an auction for a considerably low price, it remains a sale because Sarah had to bid and pay for the property, despite the advantageous price. Likewise, in the scenarios involving Freda and Ben, they acquired their properties via transactions involving payment, albeit the properties have appreciated in value, making these cases sales and not gifts as well.