Tony died on April 5, 2019. As part of his will, he leaves land that he paid $6,000 for in 2004 to his son Philip. On April 5, 2019, the land is worth $11,000. However, because of the local real estate conditions, the land continues to decline in value. On July 28, it is worth only $10,000; it declines further to $9,000 on October 5 and plunges to $7,000 on December 18. In the absence of any special elections,
I.Philip's basis in the land is $6,000.II.if the executor distributes the land to Philip on July 28, Philip's basis in the land will be $10,000.?
A. Only statement I is correct.
B. Only statement II is correct.
C. Both statements are correct.
D. None of the statements are correct.
Answer: D
You might also like to view...
When writing for a claim or adjustment, what should be included in the opening paragraph?
A) Specific explanations of the reason for the claim B) An offering of supporting documentation such as receipts C) A request for specific action D) A statement of the problem E) The remedy being sought
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The amount of the cash paid on August 26 equals:
A. $8,250.00. B. $9,750.00. C. $9,652.50. D. $8,167.50. E. $8,152.50.
Gerald files a petition in bankruptcy. An automatic stay will apply to actions by creditors seeking to collect Gerald's debts comprised of
a. alimony. b. child-support. c. none of the choices. d. car payments.
Compensatory damages compensate an injured party for damages arising directly from the loss of a bargain caused by a breach of contract.
Answer the following statement true (T) or false (F)