Last Year, E Received 50 Acres of Undeveloped Land as a Gift

question 37

Multiple Choice

Last year, E received 50 acres of undeveloped land as a gift from her grandmother.The land had cost $20,000 15 years ago, but was appraised at $50,000 on the date of the gift.E's grandmother paid gift taxes of $12,000 on this $36,000 taxable gift ($50,000 fair value - $14,000 annual gift tax exclusion) .If E sells the land this year for $55,000 (net of selling expenses) , what is her gain on the sale?

• A)$5,000
• B)$19,000
• C)$23,000
• D)$25,000

---

Definitions:

Foot Care

The practice of maintaining the health of the feet through cleanliness, inspection, treatment of disorders, and proper footwear.

Commercial Product

Any good or service that is developed and produced for sale to the general consumer market.

Braid

A complex structure or pattern formed by intertwining three or more strands of flexible material such as hair, wire, or textile.

Spinal Cord Injury

Damage to the spinal cord that results in a loss of function, such as mobility or feeling, below the site of the injury.