Majoo Inherited Property from His Uncle on August 15,2017

question 4

Short Answer

Majoo inherited property from his uncle on August 15,2017.His uncle purchased the property on December 10,2015 for $100,000.At the date of his death,the property's FMV was $102,000.Majoo sold the property on September 30,2017 for $105,000.
a.What is the gain on the sale of the property?
b.What is the nature of the gain?

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Definitions:

Intercostal Space

The anatomical area between two ribs, which contains muscles, nerves, and blood vessels.

Tympany

A drum-like sound produced during percussion of a body cavity with significant air content, often heard in the abdomen.

Xiphoid Process

The small, cartilaginous projection at the lower end of the sternum, which can become ossified in adults.

Aortic Pulsations

The rhythmic expansion and contraction felt over the aorta, reflecting the heartbeat and blood flow.