Tobin Inherited 100 Acres of Land on the Death of His

question 22

Multiple Choice

Tobin inherited 100 acres of land on the death of his father in 2019.A Federal estate tax return was filed and the land was valued at $300,000 (its fair market value at the date of the death) .The father had originally acquired the land in 1976 for $19,000 and prior to his death had made permanent improvements of $6,000.What is Tobin's basis in the land?

• A)$19,000
• B)$25,000
• C)$300,000
• D)$325,000

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Definitions:

Allocare

Literally, “other-care”; the care of children by people other than the biological parents.

Biological Parents

The parents who are genetically related to the child, typically referring to the mother and father from whom the child inherits DNA.

Cognitive Theory

A theoretical perspective that emphasizes internal mental processes as the key to understanding human behavior.

Working Model

In cognitive theory, a set of assumptions that the individual uses to organize perceptions and experiences. For example, a person might assume that other people are trustworthy and be surprised by an incident in which this working model of human behavior is erroneous.