Business, 12.03.2020 00:08 zakwanasim123
Part 1: Kathleen received land as a gift from her grandfather. At the time of the gift, the land had a FMV of $105,000 and an adjusted basis of $85,000 to Kathleen's grandfather. One year later, Kathleen sold the land for $110,000. What was her gain or (loss) on this transaction?
a.. No gain or loss
b. ($5,000)
c. $20,000
d. $25,000
Part 2 If numbers were
FMV $85,000 at time of gift and adjusted basis was $110,000 to Kathleen's grandfather. One year later Kathleen sold the land for $80,000 what would her gain or (loss) be in this transaction be?
a. No gain or loss
b. ($5,000) loss
c. $5,000 gain
d. $30,000 gain
Answers: 1
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