tax quiz 10 - The basis of property acquired from a...

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at the date of receipt of the property. Answer: True False The general rule for the basis of property acquired from a decedent is that it is the fair market value of the property at the date of death of the decedent. Incorrect Marks for this submission: 0/1. Question 2 Marks: 1 Brenda Baines sells land to Carla Chandler for $15,000 cash and a piece of equipment with an adjusted basis of $15,000 and a fair market value of $20,000. The land was subject to a $25,000 mortgage which Carla assumed. Brenda incurred $2,500 in selling expenses. What is the amount realized by Brenda? Choose one answer. a. $55,000 b. $60,000 c. $52,500 d. $57,500 The amount realized is $57,500 ($15,000 cash + $20,000 fair market value of the equipment + $25,000 mortgage assumed by Carla - $2,500 selling expenses). Correct Marks for this submission: 1/1. Question 3 Marks: 1 Elizabeth Eason constructed an asset to be used in her business – a sole proprietorship. The basis she used for the finished asset should include the employee compensation for the work attributable to the construction of the asset. Answer: True False The basis of the asset should include costs attributable to the construction of the asset. Correct
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tax quiz 10 - The basis of property acquired from a...

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