Which of the Following Is Correct

question 69

Multiple Choice

Which of the following is correct?

• A)The gain basis for property received by gift is the lesser of the donor's adjusted basis or the fair market value on the date of the gift.
• B)The loss basis for property received by gift is the same as the donor's basis.
• C)The gain basis for inherited property is the same as the decedent's basis.
• D)The loss basis for inherited property is the lesser of the decedent's basis or the fair market value on the date of the decedent's death.
• E)None of these.

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Definitions:

Consumer Surplus

The difference between the maximum price a consumer is (or consumers are) willing to pay for an additional unit of a product and its market price; the triangular area below the demand curve and above the market price.

Net Benefit

Net benefit refers to the total positive effects or advantages of a decision or action, minus any costs or negative effects associated with it.

Creative Destruction

A process where new innovations cause the demise of older industries or technologies, leading to economic growth and development.

Economic Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.