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

question 87

Multiple Choice

Arthur owns a tract of undeveloped land (adjusted basis of $145,000) that 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.

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