Gordon Died on January 1 and by His Will Left

question 96

Multiple Choice

Gordon died on January 1 and by his will left land with an adjusted basis of $60,000 and an FMV of $100,000 to Becky. Becky disclaims the property on December 31 of the year of death, when the land was still worth $100,000. Becky has made a gift (before the annual gift tax exclusion) of

• A)$100,000.
• B)$60,000.
• C)$50,000.
• D)$0.

---

Definitions:

Cash Flow Per Share

A financial metric that measures a company’s operating cash flow divided by the number of its outstanding shares.

IFRS

International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide how financial events are reported in financial statements globally.

GAAP

Generally Accepted Accounting Principles, standard guidelines and procedures for financial accounting and reporting in the U.S.

Indirect Method

A method used in cash flow statements where net income is adjusted for items that affected reported net income but did not result in an actual cash flow.