Greg Transfers Property on August 8 of the Current Year

question 70

Multiple Choice

Greg transfers property on August 8 of the current year with an adjusted basis of $40,000 and an FMV of $90,000 to his ex-wife as a property settlement that is part of their divorce agreement. The property settlement agreement and the divorce were both finalized on June 3 of the current year. Greg has made a gift of

• A)$0.
• B)$40,000.
• C)$80,000.
• D)$90,000.

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Definitions:

Counterbore

A cylindrical flat-bottomed hole that enlarges another hole, typically to allow a screw or bolt head to sit flush with or below the surface of a material.

Spotface

A machined flat surface around a hole, usually to provide a seating area for a fastener head or washer.

Countersink

A conical cut made in a manufactured object, or the cutter used to create that cut, allowing the head of a screw or bolt to sit flush with or below the surface of the surrounding material.

Crosshatching

Crosshatching is a shading technique used in drawing and drafting to indicate surfaces in cut-sections, often to differentiate types of materials or components.