When You Inherit an Asset Because Someone Died, Your Basis

question 38

Multiple Choice

When you inherit an asset because someone died, your basis becomes the fair market value as of the person's death. This refers to which of the following?

• A) Long-term capital gain.
• B) Short-term capital gain.
• C) Stepped-up basis.
• D) Capital asset.

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Definitions:

Game Theory

A theoretical framework for conceiving social situations among competing players. It is used in various fields, such as economics, political science, and psychology, to model strategic interactions.

John Von Neumann

A mathematician and polymath who contributed to many fields, including game theory, computer science, economics, and quantum mechanics.

Game Theory

A branch of mathematics and economics that studies decision-making in situations where the outcome depends on the actions of two or more decision makers.

John Nash

A mathematician and Nobel Prize winner known for his work in game theory, including the development of the Nash equilibrium concept.