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Ed and Cheryl Have Been Married for 27 Years

question 30

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Ed and Cheryl have been married for 27 years.They own land jointly with a basis of $300,000.Ed dies in 2016,when the fair market value of the land is $500,000.Under the joint ownership arrangement,the land passed to Cheryl.
a.If Ed and Cheryl reside in a community property state,what is Cheryl's basis in the land?
b.If Ed and Cheryl reside in a common law state,what is Cheryl's basis in the land?


Definitions:

Intrapersonal Conflict

Intrapersonal conflict occurs within the individual because of actual or perceived pressures from incompatible goals or expectations.

Incompatible Goals

Objectives that cannot be achieved simultaneously because they conflict with one another.

Approach-avoidance Conflict

A psychological struggle experienced when an individual is attracted to and repelled by the same goal or decision at the same time.

Personal Time

Time allocated for individual pursuits, rest, or leisure that is not dedicated to work-related activities.

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