Miguel Gives Roberta Land with an Adjusted Basis of $50,000

question 9

Multiple Choice

Miguel gives Roberta land with an adjusted basis of $50,000 and an FMV of $40,000. No gift tax is paid. Roberta sells the land for $36,000. Roberta recognizes

• A)no loss.
• B)a $4,000 loss.
• C)a $14,000 loss.
• D)none of the above

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Definitions:

Dieric Bouts

A Dutch painter who was active in the 15th century, known for his religious scenes and for his role in the development of the Early Netherlandish painting style.

Relief Carving

A sculptural technique where the sculpted elements remain attached to a solid background of the same material.

Stained Glass

Colored glass pieces assembled into patterns or pictures, often used in windows, to control light and enhance the beauty of buildings, especially in churches.

Tapestry

A weaving technique in which the weft threads are packed densely over the warp threads so that the designs are woven directly into the fabric.