Jay Sells Property with an Adjusted Basis of $19,000 to His

question 139

Multiple Choice

Jay sells property with an adjusted basis of $19,000 to his daughter for $12,000.Daughter subsequently sells the property to her brother for $12,000.Two years later,brother sells the property to Hun,an unrelated party,for $21,000.What is brother's recognized gain or loss on the sale of the property?

• A)$0.
• B)$2,000.
• C)$4,000.
• D)($2,000).
• E)None of the above.

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Definitions:

Domestic Consumers

Individuals or entities within a country that purchase goods and services.

Domestic Producers

Companies or individuals that produce goods or services within their home country.

Equilibrium Price

The cost at which the volume of goods available equals the volume sought by consumers.

Equilibrium Quantity

The amount of products or services available and sought after at the balance price.