Miguel and Patricia recently sold some land they owned for $200,000. They received the land five years ago as a wedding gift from Miguel's Aunt Sela. Aunt Sela purchased the land many years ago when the property was worth $20,000. Aunt Sela had previously given the couple $25,000 as a gift at their wedding shower. At the date of the gift, the property was worth $100,000 and Aunt Sela paid $40,000 in gift tax. What is the long term capital gain on the sale of the property? A $42,400 B. $52,000 C. $92,400 D. $148,000

Miguel and Patricia recently sold some land they owned for $200,000. They received the land five years ago as a wedding gift from Miguel's Aunt Sela. Aunt Sela purchased the land many years ago when the property was worth $20,000. Aunt Sela had previously given the couple $25,000 as a gift at their wedding shower. At the date of the gift, the property was worth $100,000 and Aunt Sela paid $40,000 in gift tax. What is the long term capital gain on the sale of the property? A $42,400 B. $52,000 C. $92,400 D. $148,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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