Several Years Ago, E Received 50 Acres of Undeveloped Land

question 9

Multiple Choice

Several years ago, 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 $32,000 (net of selling expenses) , what is her gain or loss on the sale?

• A)$2,000 gain
• B)$4,000 loss
• C)$18,000 loss
• D)No gain or loss

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Definitions:

Functional Autonomy

The concept that motives in an adult are independent of the early experiences in which they originally appeared.

Perseverative Striving

Perseverative striving is the repeated and continuous effort towards a goal, even in the face of obstacles, frustration, or evidence that the goal may be unattainable.

Ego Dispositions

The habitual tendencies and attitudes of the ego that influence behavior and responses to the environment.

Stimuli

External factors or events that trigger sensory responses or reactions in organisms.