Last Year F Was Accident-Prone

question 20

Multiple Choice

Last year F was accident-prone.He knocked over an expensive vase, shattering it; left an old radio on that caused a fire that destroyed his office equipment; and wrecked his bike.The bases and fair market values of the property are shown below.Assuming F does not elect to replace the vase or bike, and that he receives $5,000 for the vase, $25,000 for the office equipment, and $25 for the bike, what must he report?

• A)$7,900 capital gain
• B)$8,000 capital gain
• C)$8,025 capital gain
• D)$7,980 capital gain
• E)Some other amount

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Definitions:

Ductus Deferens

A tube that carries sperm from the epididymis to the ejaculatory ducts in the male reproductive system.

Seminiferous Tubule

Narrow, coiled tubules within the testes where spermatozoa are produced.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to and removing waste from the fetus.

Fetal Blood Cell Production

The process by which blood cells are produced in the fetus, primarily taking place in the liver and spleen before birth.