Nancy Gives Her Niece a Crane to Use in Her

question 158

Multiple Choice

Nancy gives her niece a crane to use in her business with a fair market value of $61,000 and a basis in Nancy's hands of $80,000. No gift tax was paid. What is the niece's basis for depreciation (cost recovery) ?

• A) $0
• B) $19,000
• C) $61,000
• D) $80,000
• E) None of the above

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Definitions:

Interference with Contractual Relations

Interference with Contractual Relations involves intentionally causing a party to a contract to fail to fulfill their obligations, harming the contractual relationship.

Plaintiff

The party who initiates a lawsuit in civil court against a defendant to seek remedy or damages.

Benefit of Performance

The advantage or gain promised to one party in a contract upon the fulfillment or performance of the conditions specified by the agreement.

Injurious Falsehood

The act of making untrue statements about a person or entity, causing harm to reputation or business.