Kelly Inherits Land That Had a Basis to the Decedent

question 65

Multiple Choice

Kelly inherits land that had a basis to the decedent of $95,000 and a fair market value of $50,000 on August 4, 2019, the date of the decedent's death.The executor distributes the land to Kelly on November 12, 2019, at which time the fair market value is $49,000.The fair market value on February 4, 2020, is $45,000.In filing the estate tax return, the executor elects the alternate valuation date.Kelly sells the land on June 10, 2020, for $48,000.What is her recognized gain or loss?

• A)($1,000)
• B)($2,000)
• C)($47,000)
• D)$1,000

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