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:

Subsidiary Company

A company that is owned or controlled by another company, which is referred to as the parent company.

Licensing

A business agreement in which one party allows another to use its brand, patent, or technology for a fee or royalty.

Turnkey Operations

A type of project that is constructed so that it can be sold to any buyer as a completed product or operation.

Turnkey Operation

A type of project that is constructed so that it can be sold to any buyer as a completed product or service.