Nikeya sells land (adjusted basis of $60,000) to her adult son,Shamed,for its appraised value of $50,000.Which of the following statements is correct?
A) Nikeya's recognized loss is $10,000 ($50,000 amount realized - $60,000 adjusted basis) .
B) Shamed's adjusted basis for the land is $60,000 ($50,000 cost + $10,000 disallowed loss for Nikeya) .
C) If Shamed subsequently sells the land for $58,000,he has no recognized gain or loss.
D) Only a.and b.are correct.
E) a. ,b. ,and c.are correct.
Correct Answer:
Verified
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