Which of the Following Is Correct

question 161

Multiple Choice

Which of the following is correct?

• A) The gain basis for property received by gift is the lesser of the donor's adjusted basis or the fair market value on the date of the gift.
• B) The loss basis for property received by gift is the same as the donor's basis.
• C) The gain basis for inherited property is the same as the decedent's basis.
• D) The loss basis for inherited property is the lesser of the decedent's basis or the fair market value on the date of the decedent's death.
• E) None of the above.

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Definitions:

Maximization

The process of increasing a particular outcome or variable to its highest potential or value, often within given constraints.

Corner-point Method

A mathematical technique used in linear programming to find the optimum solution by evaluating the objective function at each corner point of the feasible region.

Dual Values

In linear programming, dual values represent the amount by which the objective function of an optimization model would improve with a one-unit increase in the right-hand side value of a constraint.

Objective Function

A mathematical expression that defines the goal of an optimization problem, e.g., to maximize profits or minimize costs.