David Gave Property with a Basis of $1,330 to Hannah

question 29

Multiple Choice

David gave property with a basis of $1,330 to Hannah when the property had a FMV of $1,000 and paid gift taxes of $80.If Hannah later sells the property for $1,400,Hannah's basis (to determine gain) in the property immediately before the sale is

• A)$1,000.
• B)$1,080.
• C)$1,330.
• D)$1,410.

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Definitions:

Distraction

The process of diverting someone's attention from the intended object of focus to something else.

Social Identity Theory

A theory positing that an individual’s sense of who they are is based on their group membership(s), which shapes their behavior and attitudes.

Group Prototypicality

The extent to which a member or members of a group represent the average or ideal characteristics of that group, influencing their status and acceptance.

Leader Schemas

Cognitive structures that contain knowledge, beliefs, and expectations about what defines a leader.