On September 18, 2019, Jerry Received Land and a Building

question 174

Essay

On September 18, 2019, Jerry received land and a building from Ted as a gift. Ted had purchased the land and building on March 5, 2016, and his adjusted basis and the fair market value at the date of the gift were as follows: $$\begin{array} { l r r } \text { Asset } & \text { AdjustedBasis } & \text { FMV } \\\text { Land } & \$ 150,000 & \$ 200,000 \\\text { Bulding } & 90,000 & 100,000\end{array}$$ Ted paid no gift tax on the transfer to Jerry.
a. Determine Jerry's adjusted basis and holding period for the land and building.
b. Assume instead that the FMV of the land was $89,000 and the FMV of the building was
$60,000. Determine Jerry's adjusted basis and holding period for the land and building.

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Definitions:

Episodic Buffer

The system that binds visual and verbal information in the long-term store and retrieves information from the long-term store.

Central Executive

The part of the brain's working memory system responsible for overseeing and regulating the flow of information from and to its various components.

Episodic Buffer

A component of the working memory system that integrates information from different sources into a single, multi-dimensional representation.

Visuospatial Sketchpad

A component of working memory responsible for holding and manipulating visual and spatial information.