Which of the Following Statements Is Incorrect Regarding the Gain

question 70

Multiple Choice

Which of the following statements is incorrect regarding the gain or loss from the sale of property received as a gift?

• A) If the FMV is less than the donor's adjusted basis at the time of the gift, the basis for figuring the gain is the donor's basis.
• B) If the FMV is less than the donor's adjusted basis at the time of the gift, the basis for figuring the loss is the FMV of the asset.
• C) If the FMV is equal to or more than the donor's adjusted basis, the basis for any gain or loss on a sale is the FMV of the asset.
• D)If the FMV is equal to or more than the donor's adjusted basis, the basis for any gain or loss on a sale is the donor's adjusted basis.

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Definitions:

Own Behavior

Refers to an individual's actions or conduct that they are personally responsible for or in control of.

Sense of Purpose

The motivation that drives individuals or groups to achieve goals and objectives, providing direction and meaning to actions or projects.

Self-interest

Acting in a way that is beneficial to oneself, often without regard for others.

Attribution Theory

A psychological theory focused on how people explain their own and others' behaviors, attributing causes to either internal dispositions or external situations.