Ross Lives in a House He Received as a Gift

question 222

Multiple Choice

Ross lives in a house he received as a gift from his father. His father had lived in the house for 12 years. The adjusted basis of the house to his father was $160,000 and the fair market value at the time of the gift was $140,000. Ross sells this residence after living in it for 18 months for $150,000 and purchases a new home for $125,000. He incurs selling expenses of $7,000. What is Ross' recognized gain or loss and basis for the new residence?

• A) ($17,000)? $125,000.
• B) ($17,000)? $142,000.
• C) $3,000? $125,000.
• D) $3,000? $128,000.
• E) None of the above.

---

Definitions:

Organizational Structures

The system that outlines how certain activities are directed in order to achieve the goals of an organization, including the rules, roles, and responsibilities.

Crude Death Rate

The number of deaths each year per 1000 members of the population.

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.

Population Growth

The increase in the number of individuals in a population, often measured over a specific time period, and influenced by factors such as birth rates, death rates, and migration.