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Ludwig Died on April 5, 2018

question 64

Multiple Choice

Ludwig died on April 5, 2018. As part of his will, he leaves land for which he paid $6,000 on December 31, 2017, to his son Don. On April 5, 2018, the land is worth $11,000. However, due to local real estate conditions, the land declines 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, Don's basis in the land is $11,000.
II.If the executor elects the alternate valuation date and distributes the land to Don on July 28, Don's basis in the land will be $9,000.
III.If the executor elects the alternate valuation date and distributes the land to Don on December 18, Don's basis will be $7,000.
IV.In the absence of any special elections, if the executor distributes the land to Don on October 5, Don's basis in the land will be $9,000.

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Definitions:

Y Chromosome

A sex chromosome found in mammals, including humans, that is typically associated with male characteristics and is paired with an X chromosome in males.

Hormones

Chemical messengers produced by glands in the body, which regulate various physiological processes and behaviors.

Cephalocaudal Pattern

A developmental principle where growth occurs starting from the head (cephalo) and moves towards the feet (caudal), highlighting a directional pattern of physical growth in humans.

Prenatal Development

The progression from conception to birth, marked by growth and development inside the womb.