James is a resident of the U.S. and has accrued capital gains on an asset. If James' heirs hold the asset at the time of his death, which of the following is true?
A. His heirs will have to pay tax on the accrual of the capital gain.
B. His heirs can sell the asset and its gains tax free.
C. The purchase price of the asset will equal the value of the asset on the day James died.
D. The purchase price of the asset will be the difference between the value of the asset and the amount of tax payable.
Answer: C
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John is able to take out a loan for $1,000 for one year at an annual interest rate of 10 percent. After calculating his return to be $200, John will:
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A supply curve is the same as a
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