Kate Dies Owning a Passive Activity with an Adjusted Basis

question 99

Multiple Choice

Kate dies owning a passive activity with an adjusted basis of $100,000. Its fair market value at that date is $130,000. Suspended losses relating to the property were $45,000.

• A) The heir's adjusted basis is $130,000, and Kate's final deduction is $15,000.
• B) The heir's adjusted basis is $130,000, and Kate's final deduction is $45,000.
• C) The heir's adjusted basis is $100,000, and Kate's final deduction is $45,000.
• D) The heir's adjusted basis is $175,000, and Kate has no final deduction.
• E) None of the above.

---

Definitions:

Creativity

The ability to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others.

Correlational Research

A method of research study used to look for and measure the degree of relationship between two or more variables or sets of data.

Self-Esteem

Someone's internal estimation of their own value or self-worth.

Income Level

A measurement of the amount of money received on a regular basis, typically used for assessing socioeconomic status.