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Jane lived in the house for two years and then sold it for $240,000. As a result of the sale, Jane will:
*a. Report no gain or lossb. Report a $10,000 lossc. Report a $20,000 lossd. Have her father report a $20,000 loss54. Martha Meyers, an employee of Ace, Inc., purchased an asset with a fair market value of $8,000 from her employer for $5,000. What amount should Martha report as income and what should her basis in the asset be?a. $0 and $5,000b. $3,000 and $5,000c. $0 and $8,000*d. $3,000 and $8,00055. On September 24, 2013, Walter Whistler gave property with a fair market value of $64,000 to Jim Jacobs. Walter's adjusted basis in the property was $49,000. The taxable gift was $50,000 and gift taxes paid on the property were $10,000. What is Jim's basis in the property?56. Joe Jimson died in 2012. Property with an adjusted basis of $60,000 and a fair market value of $120,000 went to Joe's beneficiary. The executor chose the alternate valuation date when the value was $112,000. The property was distributed four months after Joe's death when the fair market value was $115,000. What is the basis of the property to the beneficiary?57. February 20, 2013: Lee Ranger purchased 100 shares of Pine Corp. stock for $30 a share. April 7, 2013: Lee sold 50 shares of Pine Corp. stock for $20 a share. April 24, 2013: Lee purchased 25 shares of Pine Corp. stock for $25 a share. What is the basis of the 25 shares purchased on April 24, 2013?
58. Ralph Rugby wanted to sell 100 shares of a stock that had suffered a serious decline in value. Several members of his family were interested in purchasing the stock. In order to preserve the loss deduction, which of the following family members should Ralph sell his stock to?a. Grandfatherb. Half-sisterc. Ralph, Inc. (Ralph's 51% owned corporation)*d. Cousin59. Which of the following statements is not true concerning installment reporting?60. On January 1, 2013, Daniel Durrow owned rental property which had an adjusted basis to him of $250,000. Daniel made the following expenditures during 2013: Ordinary painting of building$ 5,000Repair of roof section (useful life not appreciably extended)2,500Legal fees paid to defend title10,000Property taxes6,000Assessment for local street improvement (value of property increased greatly)15,000Not considering depreciation, what is Daniel's basis in the property at year-end? 61. On October 7, 2013, Grace Gems purchased a going business for the lump-sum price of $200,000. The fair market values of the assets Grace purchased were as follows:
U.S. government securities$10,000Land36,000Building90,000Equipment15,000Furniture9,000What is Grace's basis in the building?