Joycelyn Gave a Diamond Necklace to Her Granddaughter Emma

question 6

Multiple Choice

Joycelyn gave a diamond necklace to her granddaughter Emma.Joycelyn had purchased the necklace in 1980 for $20,000.The FMV of the necklace at the time of the gift was $50,000.After deducting the annual exclusion,the amount of the gift was $35,000.Gift taxes of $10,000 were paid.What is Emma's adjusted basis in the necklace?

• A)$20,000
• B)$28,571
• C)$30,000
• D)$50,000

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Definitions:

Bank Statement

A document that summarizes all the transactions entered into by an account holder within a specific time frame.

Outstanding Checks

Outstanding checks refer to checks that have been written and recorded in the check register but have not been cashed or cleared by the bank yet.

Service Charge

An additional fee charged for services rendered, often added to a bill in restaurants or for banking services.

Adjusted Cash Balance

The final amount of cash available in an account after all adjustments, including deposits, withdrawals, and any interest earned, have been accounted for.