Paul Sells Property with an Adjusted Basis of $45,000 to His

question 86

Multiple Choice

Paul sells property with an adjusted basis of $45,000 to his daughter Dean, for $38,000. Dean subsequently sells the property to her brother, Preston, for $38,000. Three years later, Preston sells the property to Hun, an unrelated party, for $50,000. What is Preston's recognized gain or loss on the sale of the property to Hun?

• A) $0
• B) $5,000
• C) $12,000
• D) ($5,000)
• E) None of the above

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Definitions:

Mental Health Problems

Disorders or conditions that affect an individual's mood, thinking, and behavior, potentially interfering with daily functioning.

Early Risk Factor

A characteristic or exposure that increases the likelihood of developing a disease or injury earlier in life.

Gender Stereotypes

The beliefs and expectations that individuals have concerning the different behavioral tendencies and distribution of personality traits between the sexes.

Physical Aggressive

pertains to behaviors that are intended to cause harm or physical injury to another person.