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:

Two-Factor Theory

Proposes that emotions are based on two factors: physiological arousal and cognitive label; the theory suggests that both are needed to experience emotion fully.

Tranquilizer

A drug used to reduce anxiety and tension, often by depressing the central nervous system.

Automatically

Happening or operating in a way that is automatic, without conscious thought or intention.

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Damage to any part of the spinal cord or nerves at the end of the spinal canal, often causing permanent changes in strength, sensation, and other body functions below the site of the injury.