David Gave Property with a Basis of $133,000 to Hannah

question 84

Multiple Choice

David gave property with a basis of $133,000 to Hannah when the property had a FMV of $100,000 and paid gift taxes of $8,000.If Hannah later sells the property for $140,000,Hannah's basis (to determine gain) in the property immediately before the sale is

• A)$100,000.
• B)$108,000.
• C)$133,000.
• D)$141,000.

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Definitions:

Expected Return

The anticipated average return of an investment over a specified period, reflecting the potential profit or loss.

Market Return

The total return on an investment, consisting of income and capital gains relative to market movements over a specified time frame.

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Short-term debt securities issued by the U.S. government.

Cyclical Stock

Equities whose prices are affected by macroeconomic, systemic changes in the economy, often correlated with economic cycles of expansion and recession.