F Owns Land with an Adjusted Basis of $45,000 and a Fair

question 57

Multiple Choice

F owns land with an adjusted basis of $45,000 and a fair market value of $72,000.Which one of the following is true of a transfer by F to his spouse, G?

• A)If F gives a one-half interest in the land to G as a wedding gift, gain of $13,500 is recognized.
• B)If F sells the land to G for $50,000 incident to their divorce, no gain is recognized and G's basis is $45,000.
• C)If F transfers the land to G without consideration incident to their divorce, gain of $13,500 is recognized.
• D)If F sells the land to G for $72,000 incident to their divorce, gain of $27,000 is recognized and G's basis is $72,000.

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