Kelly Inherits Land Which Had a Basis to the Decedent

question 200

Multiple Choice

Kelly inherits land which had a basis to the decedent of $95,000 and a fair market value of $50,000 on August 4, 2018, the date of the decedent's death. The executor distributes the land to Kelly on November 12, 2018, at which time the fair market value is $49,000. The fair market value on February 4, 2019, is $45,000. In filing the estate tax return, the executor elects the alternate valuation date. Kelly sells the land on June 10, 2019, for $48,000. What is her recognized gain or loss?

• A) ($1,000)
• B) ($2,000)
• C) ($47,000)
• D) $1,000
• E) None of the above

Understand the basic concepts and terminology related to supply chain and inventory management, such as advanced shipping notices, just-in-time (JIT) systems, quick response (QR) inventory systems, and radio frequency identification (RFID) tags.

Comprehend the various types of inventory systems and their advantages in improving product availability and reducing inventory costs.

Identify the role of technology, including RFID and point-of-sale (POS) systems, in facilitating efficient supply chain management.

Recognize the importance and challenges of managing the supply chain in the retail industry, including distribution center advantages and just-in-time (JIT) inventory management costs.

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Definitions:

Indirect Method

An accounting practice used to prepare the cash flow statement, where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Net Income

The total revenue minus total expenses, representing the company's profit.

Operating Activities

These are the primary day-to-day activities of a business that relate to its production, sales, and deliveries of its products and services.

Prepaid Insurance

An asset account that represents the amount paid for insurance coverage in advance of the service period.