David Gave Property with a Basis of $133,000 to Hannah

question 84

Multiple Choice

David gave property with a basis of $133,000 to Hannah when the property had a FMV of $100,000 and paid gift taxes of $8,000.If Hannah later sells the property for $140,000,Hannah's basis (to determine gain) in the property immediately before the sale is

• A)$100,000.
• B)$108,000.
• C)$133,000.
• D)$141,000.

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Definitions:

Wages And Salaries

Compensation paid to employees for their services, where wages are often hourly rates and salaries are fixed annual amounts.

Planning Budget

A financial plan for the future which outlines projected income and expenditures during a specific period.

Net Operating Income

The profit generated from a company's regular business operations, excluding deductions for interest and taxes.

Flexible Budget

A flexible budget that varies according to activity or volume changes.