Paul Sells Property with an Adjusted Basis of $45,000 to His

question 86

Multiple Choice

Paul sells property with an adjusted basis of $45,000 to his daughter Dean, for $38,000. Dean subsequently sells the property to her brother, Preston, for $38,000. Three years later, Preston sells the property to Hun, an unrelated party, for $50,000. What is Preston's recognized gain or loss on the sale of the property to Hun?

• A) $0
• B) $5,000
• C) $12,000
• D) ($5,000)
• E) None of the above

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Definitions:

Naming Conflicts

Situations where two or more identifiers are given the same name in a programming or database context, leading to errors or confusion.

Clone

To make an exact copy of something, often used in the context of digital data or biological specimens.

Application Title

The name given to an application, often displayed in the title bar of the program window.

Database Filename

The name of a file that stores database data, typically seen with specific file extensions like .db, .mdb, or .sqlite.