Alice Is Terminally Ill and Does Not Expect to Live

question 50

Essay

Alice is terminally ill and does not expect to live much longer.Pondering the consequences of her estate, she decides how to allocate her property to her nieces.She makes a gift of depreciated property (i.e., adjusted basis exceeds fair market value) to Marsha, a gift of appreciated property (i.e., fair market value exceeds adjusted basis) to Jan, and leaves appreciated property to Cindy in her will.Each of the properties has the same fair market value.From an income tax perspective, which niece is her favorite?

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Definitions:

Pacinian Corpuscles

Specialized nerve endings in the skin and visceral organs sensitive to pressure and vibration.

Meissner Corpuscles

Specialized nerve endings found in the skin that are responsible for sensitivity to light touch.

Ruffini End Organs

Sensory receptors in the skin and fascia that detect stretch and twists, contributing to the kinesthetic sense and control of finger position and movement.

Hair Follicle Receptors

Sensory nerve endings around the base of hair follicles that detect touch or movement on the skin's surface.