Jack has a parcel of vacant land that he had purchased as an investment. The land has an adjusted cost base of $146,000 to Jack. The fair market value of the land on January 1 of the current taxation year is $165,000. On this date, Jack gifts the property to his 14-year-ol daughter, Theresa. Theresa subsequently sells the land on December 1 of the current year for its fair market value of $200,000. How much gain will each recognize on this series of transactions? Choose the correct answer. O A. Jack, $0; Theresa, $54,000 B. Jack, $35,000; Theresa, $19,000 C. Jack, $19,000; Theresa, $35,000 D. Jack, $54,000; Theresa $0
Jack has a parcel of vacant land that he had purchased as an investment. The land has an adjusted cost base of $146,000 to Jack. The fair market value of the land on January 1 of the current taxation year is $165,000. On this date, Jack gifts the property to his 14-year-ol daughter, Theresa. Theresa subsequently sells the land on December 1 of the current year for its fair market value of $200,000. How much gain will each recognize on this series of transactions? Choose the correct answer. O A. Jack, $0; Theresa, $54,000 B. Jack, $35,000; Theresa, $19,000 C. Jack, $19,000; Theresa, $35,000 D. Jack, $54,000; Theresa $0
Chapter1: Financial Statements And Business Decisions
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