Paul Sells Property with an Adjusted Basis of $45,000 to His

question 6

Multiple Choice

Paul sells property with an adjusted basis of $45,000 to his daughter Dean for $38,000.Dean subsequently sells the property to her brother, Preston, for $38,000.Three years later, Preston sells the property to Hun, an unrelated party, for $50,000.What is Preston's recognized gain or loss on the sale of the property to Hun?

• A)$0
• B)$5,000
• C)$12,000
• D)($5,000)

---

Definitions:

Information

Data that has been processed, organized, or structured in a way that is meaningful to the user.

Media Richness

The ability of a communication medium to effectively convey information, taking into account elements such as immediacy of feedback, cues available, and personal focus.

Newsletter

A periodic publication distributed to members of a group or organization, containing news, updates, and relevant information.

E-mail

A method of exchanging digital messages over the Internet between individuals or groups.