25. Marlene received dining room furniture as a gift from her friend, Ronald. Ronald’s adjusted basis was $9,200 and the fair market value on the date of the gift was $7,000. Marlene decided she did not need the furniture and sold it to a neighbor six months later for $6,500. What was Marlene’s recognized gain or loss?
26. Tally inherited 100 acres of land on the death of his father in 2017. A Federal estate tax return was filed for his father’s estate and the land was valued at $300,000 (its fair market value at the date of the death). His father had originally acquired the land in 1974 for $19,000 and prior to his death had made permanent improvements of $6,000. What is Tally’s basis in the land?
27. Charlie owns a tract of undeveloped land (adjusted basis of $145,000) which he sold to his son, Otis, for its fair market value of $105,000. What was Charlie’s recognized gain or loss and what is Otis’ basis in the land, respectively?a. $0 and $105,000, respectivelyb. $0 and $145,000, respectivelyc. ($40,000) and $105,000, respectively d. ($40,000) and $145,000, respectivelye. None of the above i
28. Which of the following legal expenses are deductible in arriving atAGI (above the line) in2018? A legal expense
29. Velma and Bud divorced. Velma’s attorney fee of $5,000 is allocated as follows: