During the Current Year,Don's Aunt Natalie Gave Him a House

question 45

Multiple Choice

During the current year,Don's aunt Natalie gave him a house.At the time of the gift,the house had a FMV of $144,000 and his aunt's adjusted basis was $133,000.After deducting the annual exclusion,the amount of the gift was $130,000.His aunt paid a gift tax of $20,000 on the house.What is Don's basis in the house for purposes of determining gain?

• A)$130,000
• B)$133,000
• C)$134,692
• D)$144,000

---

Definitions:

Demand Curve

A visual display that illustrates the connection between a product's price and the amount consumers want to buy over a specified time frame.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied, usually illustrating an upward slope.

Equilibrium Quantity

is the quantity of goods or services supplied and demanded at the equilibrium price, where market demand equals market supply.

Price Floor

A price floor is a government-imposed limit on how low a price can be charged for a commodity, typically implemented to protect producers' income.