Harry Jenkins, a widower, owned 10 acres of land that he purchased in 1994 for $5,000 per
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Question:
Harry Jenkins, a widower, owned 10 acres of land that he purchased in 1994 for $5,000 per acre. On the date of Harry's death, June 30, 2009, the land was valued at $10,000 per acre. Harry's only child is Elizabeth. If after inheriting the land, Elizabeth sells the property in 2011 for $200,000, which of the following statements correctly summarizes the potential federal tax consequences to Elizabeth?
Options:
Elizabeth's gain will be zero because she is Harry's sole heir
Elizabeth's gain will be $100,000
Elizabeth will be required to recognize a gain of $200,000 even though she is Harry's sole heir
Elizabeth's gain will be $150,000
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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