Margaret Died on September 16,2014,when She Owned Securities with a Basis

question 48

Multiple Choice

Margaret died on September 16,2014,when she owned securities with a basis of $50,000 and a FMV of $60,000.Caroline inherited the property and sold it on December 19,2014 for $67,000.What is Caroline's reported gain on this sale?

• A)$7,000 STCG
• B)$7,000 LTCG
• C)$17,000 STCG
• D)$17,000 LTCG

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Definitions:

Instinct

The innate inclination of a living organism towards a particular complex behavior.

Reflex

An unlearned, involuntary action or movement in response to a stimulus. A reflex occurs without conscious thought.

Cephalocaudal

A principle of development that describes growth and development that begins at the head and progresses downward towards the feet.

Proximodistal

A pattern of development where growth starts at the center of the body and moves towards the extremities.