Arthur Owns a Tract of Undeveloped Land (Adjusted Basis of $145,000)which

question 90

Multiple Choice

Arthur owns a tract of undeveloped land (adjusted basis of $145,000) which he sells to his son,Ned,for its fair market value of $105,000.What is Arthur's recognized gain or loss and Ned's basis in the land?

• A)$0 and $105,000.
• B)$0 and $145,000.
• C)($40,000)and $105,000.
• D)($40,000)and $145,000.
• E)None of these.

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Definitions:

Autopsy

A medical examination of a body after death to determine the cause of death or the character and extent of changes produced by disease.

Histology

The study of the microscopic structure of tissues.

Extracellular Material

Substances found outside of cells within a tissue or organism, which provides structural and biochemical support to surrounding cells.

Matrix

The intercellular substance of a tissue, or the material in which cells are embedded, ranging from the fluid blood plasma to solid bone.