Miguel Gives Roberta Land with an Adjusted Basis of $50,000

question 9

Multiple Choice

Miguel gives Roberta land with an adjusted basis of $50,000 and an FMV of $40,000. No gift tax is paid. Roberta sells the land for $36,000. Roberta recognizes

• A)no loss.
• B)a $4,000 loss.
• C)a $14,000 loss.
• D)none of the above

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Definitions:

Income Distribution

The distribution of total earnings among individuals within a society.

More Equal

A phrase describing a reduction in disparities or inequalities, typically in contexts related to income, wealth, or opportunities.

Wealth Distribution

The manner in which wealth is distributed among the individuals in a society.

Income Inequality

Income inequality describes the extent to which income is distributed unevenly among a population.