Arthur Owns a Tract of Undeveloped Land (Adjusted Basis of $145,000)

question 85

Multiple Choice

Arthur owns a tract of undeveloped land (adjusted basis of $145,000) which he sells to his son, Ned, for its fair market value of $105,000. What is Arthur's recognized gain or loss and Ned's basis in the land?

• A) $0 and $105,000.
• B) $0 and $145,000.
• C) ($40,000) and $105,000.
• D) ($40,000) and $145,000.
• E) None of the above.

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Definitions:

Innately More Nurturing

The notion that certain individuals are naturally more inclined to provide care and support to others.

Child Care Activities

Tasks and responsibilities associated with the care and upbringing of children, including education, nurturing, and ensuring their health and safety.

Passive Recipients

Individuals who receive actions, information, or materials without actively engaging or responding.

Active Participants

Individuals who are actively engaged and involved in a process, activity, or event.