Randall Is Given Five Acres of Land in 2005

question 38

Essay

Randall is given five acres of land in 2005. At the time of the gift, the land had a fair market value of $182,000, and its adjusted basis to the donor was $160,000. What is Randall's gain if he sells the land for $184,000?

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Definitions:

Human Voice

The sound produced by humans using the vocal folds for speaking, singing, laughing, crying, screaming, etc.

Soothing music

Refers to types of music composed to relax, calm, and bring comfort to the listener.

Baby's Sounds

Refers to the noises made by infants, which can include crying, cooing, babbling, and laughing, as part of their early communication skills.

Palm

The inner surface of the hand from the wrist to the base of the fingers or the tropical tree yielding coconuts or dates.