During the current year, Stan sells a tract of land for $ 800 comma 000. The property was received as a gift from Maxine on March 10, 1995, when the property had a $ 310 comma 000 FMV. The taxable gift was $ 300 comma 000 because the annual exclusion was $ 10 comma 000 in 1995. Maxine purchased the property on April 12, 1980, for $ 110 comma 000. At the time of the gift, Maxine paid a gift tax of $ 12 comma 000. In order to sell the property, Stan paid a sales commission of $ 16 comma 000.

A. $8,000

B. $674,000

Explanation:

Amount realized: $ 800,000 – $16,000

= $784,000

$784,000- $110,000 = $674,000

$674,000- $8000= $666,000

Therefore:

Gift tax base× (FMV at time of gift – donor’s basis)/amount of the gift)

=$12,000× ($300,000 – $100,000)/$300,000)

=$12,000×($200,000)/$300,000

=$400,000,000/$300,000

=$ 8000

b.

Amount realized $784,000 - $110,000= $674,000

My answer to Part a change, if at all, if the FMV of the gift property was $85,000 as of the date of the gift is because $85,000 – 100,000 <0 meaning $15,000<0

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;

answer; empowerment and collaboration;