Under the Terms of Q's Will, Beneficiary X Was to Receive

question 5

Multiple Choice

Under the terms of Q's will, beneficiary X was to receive a cash (pecuniary) bequest of $25,000.X agreed to accept certain shares of corporate stock, FMV $25,000, out of the Estate of Q in satisfaction of this bequest.The basis of the shares to the Q Estate was $21,000, the value of the shares at the date of Q's death.Based on these facts,

• A)The Estate of Q will recognize a $4,000 gain, and X will have a $25,000 basis in the shares.
• B)The Estate of Q will recognize a $4,000 gain, and X will have a $21,000 basis in the shares.
• C)The Estate of Q will not recognize any gain, and X will have a $21,000 basis in the shares.
• D)The Estate of Q will not recognize any gain, and X will have a $25,000 basis in the shares.

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Definitions:

Neurotransmitters

Neurotransmitters are chemicals found in the nervous system that transmit signals across a synapse from one neuron to another, influencing mental processes and behavior.

Myelin

An insulating layer, or sheath, made of protein and fatty substances, that surrounds the axons of some neurons, enabling fast and efficient transmission of electrical impulses.

Synaptic Cleft

The small gap at a synapse between neurons, across which neurotransmitters move from one neuron to another.

Terminal Buttons

The small knobs at the end of an axon that release chemicals called neurotransmitters into the synapse, thereby transmitting nerve impulses to another nerve cell.