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What is the difference between economic efficiency and equity?
Fair Market Value
The price at which an asset would be bought or sold in an open market.
Tax Consequences
The financial effects of transactions on tax liabilities, including how investments, income, or deductions affect taxes owed.
Basis
The initial value of an asset for tax purposes, usually the purchase price, used to calculate gains or losses when the asset is sold.
Recognized Gain
The profit realized from the sale or exchange of an asset over its adjusted basis.
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