Dale Gave Property with a Basis of $16,000 to Sarah

question 39

Multiple Choice

Dale gave property with a basis of $16,000 to Sarah when it had a FMV of $12,000.Sarah later sold the property for $22,000 resulting in a recognized gain of

• A)$-0-.
• B)$4,000.
• C)$6,000.
• D)$12,000.

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Definitions:

Unit Product Cost

The total cost to produce one unit of a product, comprising both direct costs like materials and labor, and allocated indirect costs.

Variable Costing

A bookkeeping procedure that adds only variable production fees (including direct materials, direct labor, and variable manufacturing overhead) into the costs associated with products.

Unit Product Cost

The total cost to produce a single unit of product, including direct materials, direct labor, and allocated overhead.

Direct Labor Cost

The expense of labor that can be directly attributed to the production of goods or services.