Kathleen Received Land as a Gift from Her Grandfather

question 78

Multiple Choice

Kathleen received land as a gift from her grandfather.At the time of the gift,the land had a FMV of $105,000 and an adjusted basis of $85,000 to Kathleen's grandfather.The grandfather did not have any gift taxes due.One year later,Kathleen sold the land for $110,000.What was her gain or (loss) on this transaction?

• A)no gain or loss
• B)($5,000)
• C)$20,000
• D)$25,000

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Definitions:

Written Language

The representation of language through the use of symbols or characters, enabling communication across time and space.

Content Listening

Involves focusing on and understanding the message's content that someone is communicating, rather than merely hearing their words.

Critical Listening

The skill of analyzing and evaluating the content of a message or sound, focusing on understanding and critiquing the information.

Empathic Listening

Listening to understand the speaker’s feelings, needs, and wants so that you can appreciate his or her point of view.