In the Current Year,Andrew Received a Gift of Property from His

question 130

Multiple Choice

In the current year,Andrew received a gift of property from his uncle.At the time of the gift,the property had a FMV of $114,000 and an adjusted basis to his uncle of $70,000.After deducting the annual exclusion,the amount of the gift was $100,000.Andrew's uncle paid a gift tax on the property of $24,000.What is the amount of Andrew's basis in the property?

• A)$70,000
• B)$80,560
• C)$94,000
• D)$114,000

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Definitions:

Conservation of Number

A cognitive ability in children to understand that the quantity of something remains the same despite changes in its form or arrangement.

Discontinuous

Characterized by interruptions or gaps, not following a smooth, uninterrupted progression.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others, and to understand that others have beliefs, desires, and intentions that are different from one's own.

Social Cognition Module

A presumed specialized brain mechanism or cognitive system that facilitates understanding, predicting, and processing social information.