Peter Received His Uncle's Coin Collection as a Gift When

question 24

Multiple Choice

Peter received his uncle's coin collection as a gift when it was valued at $150,000.Over the years, the uncle had purchased the coins for a total of $75,000.The uncle paid a $15,000 gift tax on the gift.What is Peter's basis in the coin collection?

• A)$75,000
• B)$82,500
• C)$90,000
• D)$150,000

Analyze the significance of the Coase theorem in resolving externality issues without government intervention.

Interpret market diagrams to analyze shifts in supply and demand due to government policies or externalities.

Understand the effect of pollution abatement on social welfare and resource allocation.

Assess the implications of under- or overallocation of resources to public goods and externalities.

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Definitions:

Small Business

An enterprise with limited revenue and a small number of employees, as defined by government standards.

Raise Capital

The act of obtaining funds or resources for business operations, expansion, or investment.

Franchise

A business model where the brand and business system of a franchisor is licensed to a franchisee in exchange for fees or royalties.

Intellectual Property

Creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names, and images used in commerce.