While Using a Metal Detector at the Beach During Spring

question 11

Multiple Choice

While using a metal detector at the beach during spring break,Toni uncovered some rare coins with a current fair market value of $9,000.What are her tax consequences regarding this find?

• A)Because it was a "find" she only reports half of the FMV as income.
• B)She reports the entire FMV as income.
• C)Since she "found" the coins,she does not have to report any amount of income until she sells the coins.
• D)Under the discovery rules in the tax law,she will never report any amount as taxable since the value is under $10,000.

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Definitions:

Condense

To make something denser or more compact, especially in the context of writing or presenting information.

Logarithms

The magnitude a base, such as 10 or e, must reach when raised to result in a designated number.

Expand

To multiply out the terms of an expression.

Properties

Characteristics or attributes that help to define mathematical operations or objects.