Kelly Inherits Land Which Had a Basis to the Decedent

question 76

Multiple Choice

Kelly inherits land which had a basis to the decedent of $95,000 and a fair market value of $50,000 on August 4, 2012, the date of the decedent's death.The executor distributes the land to Kelly on November 12, 2012, at which time the fair market value is $49,000.The fair market value on February 4, 2013, is $45,000.In filing the estate tax return, the executor elects the alternate valuation date.Kelly sells the land on June 10, 2013, for $48,000.What is her recognized gain or loss?

• A)($1,000).
• B)($2,000).
• C)($47,000).
• D)$1,000.
• E)None of the above.

---

Definitions:

Labor Demand

The total number of hours that employers want to hire labor at a given wage rate, in a given time period.

Crowding Model

The crowding model is a concept in labor economics that suggests an oversupply of workers in certain sectors can lead to reduced wages and employment opportunities in those sectors.

Domestic Output

The total value of all goods and services produced within a country's borders in a specified time period.

Occupations

The various kinds of jobs or professions that individuals engage in to earn a living.