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.

---

Definitions:

Labor Supplied Exceeding

A situation where the quantity of labor offered by workers surpasses the quantity demanded by employers.

Long-run Unemployment

Unemployment that persists in an economy for an extended period, often due to fundamental shifts in the economy or structural changes in the labor market.

Labor Markets

Markets where labor is traded, involving the hire and utilization of workers, affected by factors like wages, demand, and supply.

Job Search

The process by which workers find appropriate jobs given their tastes and skills