Ed Gives Steve Land with an Adjusted Basis of $40,000

question 31

Multiple Choice

Ed gives Steve land with an adjusted basis of $40,000 and an FMV of $90,000. Ed paid no gift tax. Ed then inherits the same land back from Steve at Steve's death eight months later. At Steve's death, the land is worth $120,000. Ed's basis in the land becomes

• A) $40,000.
• B) $120,000.
• C) $90,000.
• D) cannot be determined from the facts given

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Definitions:

Postvoid Residual

The volume of urine left in the bladder after voiding, measured to assess bladder emptying issues.

Symphysis Pubis

A cartilaginous joint located between the left and right pubic bones near the front of the pelvis, supporting pelvic stability.

Bladder Scan

A non-invasive ultrasound procedure used to estimate the volume of urine in the bladder.

Indwelling Catheter

A tube inserted into a body cavity, such as the bladder, to allow for the continuous discharge of fluid.