Billy and Sue are married and live in Texas, a community property state. They jointly own real property with an adjusted basis of $200,000. When the property has a FMV of $450,000, Billy dies leaving all of the property to Sue. If she later sells the property for $650,000, what is Sue's gain on the sale?
A) $200,000
B) $225,000
C) $325,000
D) $450,000
A) $200,000
$650,000 amount realized - $450,000 basis = $200,000. Both her portion and Billy's portion get a step-up in basis.
You might also like to view...
During construction of a building, the cost of interest on a construction loan should be charged to an expenseaccount
a. True b. False Indicate whether the statement is true or false
Use the following information to answer the question below. The following accounts appear in the ledger of Pepper Corporation on December 31, 20x5 Preferred Stock $60,000 Common Stock 104,000 Additional Paid-in Capital, Preferred 14,000 Additional Paid-in Capital, Common 36,000 Retained Earnings 80,000 A balance sheet prepared on December 31, 20x5 , would report total stockholders' equity of
A) $164,000. B) $178,000. C) $214,000. D) $294,000.
Value-based pricing uses the sellers' perception of value as the key to pricing
Indicate whether the statement is true or false
Describe a business situation in which passive listening could lead to a costly mistake
What will be an ideal response?