In the Current Year,Andrew Received a Gift of Property from His

question 130

Multiple Choice

In the current year,Andrew received a gift of property from his uncle.At the time of the gift,the property had a FMV of $114,000 and an adjusted basis to his uncle of $70,000.After deducting the annual exclusion,the amount of the gift was $100,000.Andrew's uncle paid a gift tax on the property of $24,000.What is the amount of Andrew's basis in the property?

• A)$70,000
• B)$80,560
• C)$94,000
• D)$114,000

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Definitions:

Self-Interest

The driving force in economics that motivates individuals to pursue their own objectives and desires, often leading to economic activity and exchanges.

Private Enterprise

Businesses or economic activities owned and managed by individual private owners rather than by the state.

Former Soviet Union

The socialist state that existed from 1922 to 1991, comprised of Russia and several other republics, which disbanded, leading to the formation of independent countries.

Externalities

Economic side effects or consequences of commercial activities that affect other parties without being reflected in the cost of the goods or services involved.