Tan, Inc, Sold a Forklift on April 12, 2018, for $8,000

question 3

Multiple Choice

Tan, Inc., sold a forklift on April 12, 2018, for $8,000 (its FMV) to its 100% shareholder, Ashley. Tan's adjusted basis for the forklift was $12,000. Ashley's holding period for the forklift:

• A) Includes Tan's holding period for the forklift.
• B) Begins on April 12, 2018.
• C) Begins on April 13, 2018.
• D) Does not begin until Ashley sells the forklift.
• E) None of the above.

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Definitions:

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