Dale Gave Property with a Basis of $16,000 to Sarah

question 92

Multiple Choice

Dale gave property with a basis of $16,000 to Sarah when it had a FMV of $12,000.No gift taxes were due.Sarah later sold the property for $22,000 resulting in a recognized gain of

• A)$0.
• B)$4,000.
• C)$6,000.
• D)$12,000.

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Definitions:

Ecological Systems Theory

A framework proposing that individual development is influenced by different levels of environmental systems.

Macrosystem

In the context of Ecological Systems Theory, it represents the broader cultural conditions, beliefs, values, customs, and laws that influence an individual's development.

DSM-5

Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition; a handbook used by healthcare professionals as the authoritative guide to diagnose mental disorders.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or dependency.