Lesley and Morgan are husband and wife and have always lived in Idaho,a community property state.At the time of Morgan's prior death,their community property includes:
Under Morgan's will,all of her property passes to Lesley.After Morgan's death,Lesley takes an income tax basis of:
A) $900,000 in Kite and $450,000 in Merlin.
B) $900,000 in Kite and $500,000 in Merlin.
C) $800,000 in Kite and $450,000 in Merlin.
D) $800,000 in Kite and $500,000 in Merlin.
E) None of the above.
Correct Answer:
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