Dale Gave Property with a Basis of $16,000 to Sarah

question 92

Multiple Choice

Dale gave property with a basis of $16,000 to Sarah when it had a FMV of $12,000.No gift taxes were due.Sarah later sold the property for $22,000 resulting in a recognized gain of

• A)$0.
• B)$4,000.
• C)$6,000.
• D)$12,000.

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Definitions:

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To show or exhibit something, often for the purpose of demonstration, presentation, or entertainment.

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental.

Increased Levels

Generally refers to a rise or escalation in the quantity, intensity, or degree of a specific variable or condition.

Independence

The state or quality of being self-sufficient and not reliant on external support or aid.