Martha Died and by Her Will, Specifically Bequeathed, and the Executor

question 77

Multiple Choice

Martha died and by her will, specifically bequeathed, and the executor distributed, $20,000 cash and a $70,000 house to Harold. The distributions were made in a year in which the estate had $65,000 of DNI, all from taxable sources. The maximum Harold will be required to report as gross income as a result of these distributions is

• A)$0.
• B)$20,000.
• C)$65,000.
• D)$70,000.

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Definitions:

Simplify

The process of making an expression easier to understand or work with by combining like terms, reducing fractions, etc.

Rational Model

A mathematical model that uses rational expressions to describe relationships between different quantities.

Least Common Denominator

The smallest positive integer that is divisible by each denominator of a set of fractions, facilitating their comparison or summation.

Common Denominator

The shared multiple of the denominators of two or more fractions, used to make their denominators the same for addition or subtraction.