Dinah Owned Land with a FMV of $130,000 (Adjusted Basis

question 83

Multiple Choice

Dinah owned land with a FMV of $130,000 (adjusted basis $120,000) which is investment property (a capital asset) .Dinah owned a second tract of land,a 1231 asset,with a FMV of $46,000 (adjusted basis $50,000) .Both tracts were acquired in 2001 and condemned by the state this year.The state paid an amount equal to FMV.If there are no other transactions involving capital assets or 1231 assets,Dinah must report on her current year return

• A)$6,000 net ordinary income.
• B)$6,000 net section 1231 gain treated as a net capital gain.
• C)a LTCG of $10,000 and a 1231 loss of $4,000.
• D)a LTCG of $10,000 and a nondeductible loss of $4,000.

Recognize the importance and goals of appraisal interviews.

Learn how to manage and mitigate biases in performance appraisal processes.

Identify different types of performance appraisal methods and their characteristics.

Understand the stages and processes involved in conducting effective appraisal interviews.

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Definitions:

Simple Interest

Simple interest is a way of calculating interest where the amount earned or paid is based on the original principal and does not compound.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock certificate.

Interest Rate

The percentage of a loan that is incurred as interest by the borrower, usually represented as an annual percentage of the outstanding loan amount.

Non-Interest-Bearing

Describes a financial instrument that does not generate interest income for the holder.