As Part of the Divorce Agreement,Tyler Transfers His Ownership Interest

question 70

Multiple Choice

As part of the divorce agreement,Tyler transfers his ownership interest in their personal residence to Lupe.The house had been jointly owned by Tyler and Lupe and the adjusted basis is $520,000.At the time of the transfer to Lupe,the fair market value is $800,000.What is the recognized gain to Tyler,and what is Lupe's basis for the house?

• A)$0 and $520,000.
• B)$0 and $800,000.
• C)$140,000 and $520,000.
• D)$280,000 and $800,000.
• E)None of these.

Understand the distinction between positive and normative economic statements through examples.

Analyze the role and influence of assumptions in economic theory.

Recognize the scarcity of resources and the importance of economizing behavior.

Learn that no good or service is entirely free; every choice involves tradeoffs.

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Definitions:

Human Mind

The totality of conscious and unconscious mental processes and activities in a human being.

General Purpose

pertains to tools, machines, or software designed to perform a variety of functions rather than being specialized for one specific task.

Reinforcement

In behavioral psychology, a consequence applied that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Skinner

B.F. Skinner, an American psychologist and behaviorist known for his work in developing the theory of operant conditioning, which involves learning through rewards and punishments.