Paul Sells Property with an Adjusted Basis of $45,000 to His

question 6

Multiple Choice

Paul sells property with an adjusted basis of $45,000 to his daughter Dean for $38,000.Dean subsequently sells the property to her brother, Preston, for $38,000.Three years later, Preston sells the property to Hun, an unrelated party, for $50,000.What is Preston's recognized gain or loss on the sale of the property to Hun?

• A)$0
• B)$5,000
• C)$12,000
• D)($5,000)

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Definitions:

Proton Spin Decoupled

A nuclear magnetic resonance (NMR) spectroscopy technique where the interaction between proton spins is removed to simplify the spectrum.

O-Diethylbenzene

An organic compound that is a variation of diethylbenzene where two ethyl groups are attached to the benzene ring in ortho positions to each other.

NMR Spectrum

A representation of the nuclear magnetic resonance of a compound, showing the environment of hydrogen or carbon atoms.

Proton Spin Decoupled

A technique in nuclear magnetic resonance (NMR) spectroscopy that simplifies the spectrum by removing interactions between proton spins.