Which of the Following Statements Is Incorrect Regarding the Gain

question 70

Multiple Choice

Which of the following statements is incorrect regarding the gain or loss from the sale of property received as a gift?

• A) If the FMV is less than the donor's adjusted basis at the time of the gift, the basis for figuring the gain is the donor's basis.
• B) If the FMV is less than the donor's adjusted basis at the time of the gift, the basis for figuring the loss is the FMV of the asset.
• C) If the FMV is equal to or more than the donor's adjusted basis, the basis for any gain or loss on a sale is the FMV of the asset.
• D)If the FMV is equal to or more than the donor's adjusted basis, the basis for any gain or loss on a sale is the donor's adjusted basis.

---

Definitions:

Northern Italy

The region of Italy characterized by a rich cultural and economic history, distinct from the southern part of the country, known for its industries, wealth, and artistic heritage.

Southern Italy

The region of Italy encompassing the southern part of the Italian Peninsula, known for its distinct historical, cultural, and geographical characteristics.

Industrialized

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, involving large-scale industry and infrastructure development.

Treaty of Prague

An agreement concluded in 1866 after the Austro-Prussian War, leading to the dissolution of the German Confederation and the establishment of the North German Confederation.