In the Current Year,Andrew Received a Gift of Property from His

question 100

Multiple Choice

In the current year,Andrew received a gift of property from his uncle.At the time of the gift,the property had a FMV of $115,000 and an adjusted basis to his uncle of $70,000.After deducting the annual exclusion,the amount of the gift was $100,000.Andrew's uncle paid a gift tax on the property of $24,000.What is the amount of Andrew's basis in the property?

• A)$70,000
• B)$80,800
• C)$94,000
• D)$115,000

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Definitions:

Uncertain

Lacking predictability, certainty, or clarity, often leading to risk or indecision in decision-making processes.

Known Values

Refers to parameters or factors in an equation or scenario that are already specified or determined.

Expected Values

The predicted average of all possible outcomes of a random variable, weighted by their probabilities.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.