George Greco Gave Harold Hudson Property Which George Acquired fiVe

question 34

Multiple Choice

George Greco gave Harold Hudson property which George acquired five years ago for $15,000. At the time of the gift, the property's fair market value was $35,000. Harold subsequently sold the property for $40,000. What amount of gain did Harold realize?

• A) $20,000
• B) $25,000
• C) $5,000
• D) $40,000

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Definitions:

Inventory Period

The average length of time items remain in inventory before being sold, indicating the efficiency of a company's inventory management.

Producing Goods

The process of creating, manufacturing, or assembling products or goods from raw materials or components.

Demand

The consumer's desire and willingness to pay a price for a specific good or service.

Cash Sales

Transactions in which goods or services are paid for and received at the time of the transaction with cash or other immediate payment methods.