Billy and Sue Are Married and Live in Texas,a Community

question 20

Multiple Choice

Billy and Sue are married and live in Texas,a community property state.They jointly own real property with an adjusted basis of $200,000.When the property has a FMV of $450,000,Billy dies leaving all of the property to Sue.If she later sells the property for $650,000,what is Sue's gain on the sale?

• A)$200,000
• B)$225,000
• C)$325,000
• D)$450,000

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Definitions:

Planning Budget

A financial plan created for a specific period, detailing the estimated revenues, expenses, and resources required to achieve particular financial goals.

Oil Well Service

Services related to the operation, maintenance, and repair of oil wells, including drilling, completion, and workover activities.

Budgeting

A process of creating a plan to spend your money, outlining projected income and expenses over a period.

Spending Variances

The difference between the actual amount spent and the budgeted amount for a particular accounting category.