Kathleen Received Land as a Gift from Her Grandfather

question 78

Multiple Choice

Kathleen received land as a gift from her grandfather.At the time of the gift,the land had a FMV of $105,000 and an adjusted basis of $85,000 to Kathleen's grandfather.The grandfather did not have any gift taxes due.One year later,Kathleen sold the land for $110,000.What was her gain or (loss) on this transaction?

• A)no gain or loss
• B)($5,000)
• C)$20,000
• D)$25,000

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Definitions:

Premature Death

Dying earlier than the statistically expected age, often due to factors like disease or accidents.

Teratogenic Agents

Substances that can cause developmental malformations (birth defects) in an embryo or fetus when exposed during pregnancy.

Physiological State

The condition of the body at a given time, including its physical and chemical processes.