When Kate Died, She Owned a Passive Activity with an Adjusted

question 42

Multiple Choice

When Kate died, she owned a passive activity with an adjusted basis of $100,000.Its fair market value at that date is $130,000.Suspended losses relating to the property were $45,000.

• A)The heir's adjusted basis is $130,000, and Kate's final deduction is $15,000.
• B)The heir's adjusted basis is $130,000, and Kate's final deduction is $45,000.
• C)The heir's adjusted basis is $100,000, and Kate's final deduction is $45,000.
• D)The heir's adjusted basis is $175,000, and Kate has no final deduction.
• E)None of these applies here.

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Definitions:

Organizational Goals

The objectives or targets that an organization aims to achieve over a certain period.

Authoritarian

A leadership or government style characterized by strong central power and limited political freedoms.

Democratic

Pertaining to a form of government where power is vested in the hands of the people, either directly or through elected representatives.

Delegated Authority

The transfer of authority and responsibilities from one party to another, often within the context of organizational hierarchy or governance.