Lucy Dies Owning a Passive Activity with an Adjusted Basis

question 52

Multiple Choice

Lucy dies owning a passive activity with an adjusted basis of $90,000.Its fair market value at that date is $145,000.Suspended losses relating to the property were $75,000.Which of the following statements is true?

• A)The heir's adjusted basis is $145,000, and Lucy's final deduction is $20,000.
• B)The heir's adjusted basis is $145,000, and Lucy's final deduction is $75,000.
• C)The heir's adjusted basis is $90,000, and Lucy's final deduction is $75,000.
• D)The heir's adjusted basis is $220,000, and Lucy has no final deduction.
• E)None of the above.

---

Definitions:

Psychoanalysis

A therapeutic approach founded by Freud, emphasizing the exploration of the unconscious mind to understand behavior.

Client-Centered Therapy

A non-directive form of talk therapy that empowers the individual to lead the session while the therapist listens empathetically, facilitating personal growth and self-acceptance.

Eclectic Approach

A methodological approach that combines theories, principles, and strategies from multiple theoretical frameworks to address psychological issues.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without filtering thoughts, aimed at uncovering unconscious thoughts and feelings.