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30 December, 04:34

Kelly inherits land that had a basis to the decedent of $95,000 and a fair market value of $50,000 on August 4, 2019, the date of the decedent's death. The executor distributes the land to Kelly on November 12, 2019, at which time the fair market value is $49,000. The fair market value on February 4, 2020, is $45,000. In filing the estate tax return, the executor elects the alternate valuation date. Kelly sells the land on June 10, 2020, for $48,000. What is her recognized gain or loss?

A. ($1,000).

B. ($2,000).

C. ($47,000).

D. $1,000.

E. None of the above.

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Answers (1)
  1. 30 December, 08:10
    0
    A. ($1,000).

    Explanation:

    In the question, it is given that the fair market value of the land is $49,000 and the selling value is $48,000. So, in the given situation the selling value of the land is less than the fair market value which reflect the loss of $1,000

    The $1,000 is come by subtracting the selling value and the fair market value

    All other information is not relevant for the computation part. Hence, ignored it
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