Andrew Makes a Gift of Securities (Basis of $1,100,000; Fair

question 30

Essay

Andrew makes a gift of securities (basis of $1,100,000; fair market value of $800,000) to his son, Carl. What is Carl's income tax basis in the securities if the gift occurred in 2016?

Identify circumstances under which a contract is considered void or voidable.

Recognize the factors influencing a court's decision to apportion losses in the case of frustrated contracts.

Understand the enforcement and limitations of non-competition clauses in employment contracts.

Identify and distinguish between proportional, progressive, and regressive tax systems.

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Definitions:

Proximal Stimuli

The stimuli that directly interact with the senses, as opposed to distal stimuli which are objects and events in the environment that provide information for the proximal stimuli.

Distal Stimuli

Objects or events in the external world that provide the basis for the perception of our immediate environment, as opposed to the sensory inputs that they generate.

Detectable Input

A level of stimulus that is sufficient to be noticed or detected by the sensory systems.

Wavelength

The distance between successive crests of a wave, usually used in the context of electromagnetic waves.