Which of the Following Is Correct

question 69

Multiple Choice

Which of the following is correct?

• A)The gain basis for property received by gift is the lesser of the donor's adjusted basis or the fair market value on the date of the gift.
• B)The loss basis for property received by gift is the same as the donor's basis.
• C)The gain basis for inherited property is the same as the decedent's basis.
• D)The loss basis for inherited property is the lesser of the decedent's basis or the fair market value on the date of the decedent's death.
• E)None of these.

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Definitions:

Administrative Agency

Any government body created by the legislative branch (e.g., Congress, a state legislature, or a city council) to carry out specific duties.

Independent Agencies

Government organizations that operate independently of the executive departments, tasked with regulating and overseeing specific areas of public policy.

Social Regulation

Rules imposed by government to correct market failures and achieve social policy goals, such as environmental protection and worker safety.

Executive Agencies

Agencies of the executive branch of government that are task-focused and responsible for the execution of laws and government policies.