Deductions & credits

Thanks TGB !  If dad's basis before the gift is 100 and he makes a gift of equity of 15 to his son, isnt his basis 85 for purposes of computing the gain? I get the carryover basis rules to the son, but... don't I take amount realized (120 in my example above) and use his "adjusted basis" of 85 to come back to the 35 gain ? Sorry I feel dense on this one. Believe me , I want to get there!