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.

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Definitions:

National Election

A formal decision-making process by which a country's population chooses individuals to hold public office.

Statistically Significant

A measure indicating that the results observed in a study are unlikely to have occurred by chance, suggesting a real effect.

Correlational

Pertaining to the measurement or establishment of a relationship between two or more variables.

Comparison Group

A group used in an experiment as a standard of comparison for checking the results of a survey or experiment - essentially, the group against which the experimental group's outcomes are measured.