A Taxpayer Sells an Asset with a Basis of $25,000

question 61

True/False

A taxpayer sells an asset with a basis of $25,000 to an unrelated party for $28,000.The taxpayer has a realized gain of $3,000.

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Definitions:

Repressed

A psychological condition where unwanted or distressing thoughts and memories are unconsciously blocked from conscious awareness.

Psychoanalysis

A therapeutic approach and theory of mind developed by Sigmund Freud, focusing on unconscious processes and childhood experiences as key factors influencing behavior and mental states.

Conscious Awareness

The state of being mentally aware of one's surroundings, thoughts, and feelings; the ability to experience and reflect upon oneself and the environment.

Unconscious Thoughts

Mental processes that occur without conscious awareness, influencing feelings, actions, and decisions in ways that are not fully apparent to the individual.