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.
​

• A)Only I is correct.
• B)I and II are correct.
• C)I, II and IV are correct.
• D)I and IV are correct.
• E)All the statements are correct.

---

Definitions:

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another, playing a key role in the functioning of the nervous system.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the body, such as heart rate and digestion.

Moderate Alcohol

Consumption of alcoholic beverages in a manner that is considered to be within the limits of safety, not leading to alcohol abuse or dependence.

Heart Attack

A medical condition that occurs when the blood supply to part of the heart is blocked, causing heart cells to die.