Tony Died on April 5,2016

question 99

Multiple Choice

Tony died on April 5,2016.As part of his will,he leaves land that he paid $6,000 for in 2003 to his son Philip.On April 5,2016,the land is worth $11,000.However,due to local real estate conditions,the land continues to decline in value.On July 28 it is worth only $10,000; it declines further to $9,000 on October 5 and plunges to $7,000 on December 18.
I.In the absence of any special elections,Philip's basis in the land is $6,000.
II.If the executor distributes the land to Philip on July 28,Philip's basis in the land will be $10,000.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Carcinomas

A type of cancer that begins in the skin or tissues that line or cover internal organs, characterized by the formation of cells that can invade neighboring tissues.

Epithelial Tissue

A type of tissue that forms the outer layer of the body's surfaces and lines internal organs and cavities.

Connective Tissue

A type of tissue in the body that supports, binds together, and protects organs, consisting of cells embedded in an extracellular matrix.

Integumentary System

The body’s covering, including the skin and its nails, glands, hair, and other associated structures.