Anike Received Property as Part of an Inheritance from Her

question 67

Multiple Choice

Anike received property as part of an inheritance from her father who passed away on March 10, 2015. Her father purchased the property on July 3, 2014, for $146,000. Anike sold the property on June 30, 2015, for $158,000. At the date of his death the property had a FMV of $144,000. What gain, if any, will Anike pick up on her return for 2015?

• A) no gain is recognized on the sale of property sold within 1 year of inheritance.
• B) $3,000 long-term gain.
• C) $14,000 short-term gain.
• D)$14,000 long-term gain.

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Definitions:

Japanese Importer

A business entity in Japan that purchases goods or services from abroad for sale in the Japanese market.

Balance of Payments

A record of all economic transactions between the residents of a country and the rest of the world within a specific period.

Goods Deficit

A situation where a country's imports of physical goods exceed its exports, leading to a negative balance in trade for physical goods.

Exchange Rate

The value of one currency for the purpose of conversion to another, affecting international trade, investments, and economic relations between countries.