1. Susan inherits a panting which had a basis to the decedent of $42,000 and a fair market value of $34,000 on August 4, 2020, the date of the decedent's death. The executor distributes the panting to Susan on November 12, 2020, at which time the fair market value is $32,500. The fair market value (6 months after the date of death) on February 4, 2021, is $32,000. In filing the estate tax return, the executor elects the alternate valuation date. Susan sells the panting on June 10, 2021, for $33,000. What is her recognized gain or loss? 2. Which of the following statements is correct? a. When depreciable property is inherited by a taxpayer, the depreciation recapture potential is extinguished. b. When corporate depreciable property is exchanged in a like-kind exchange, the depreciation recapture potential is extinguished. c. When depreciable property is contributed to charity, the depreciation recapture potential has no effect on the amount of the charitable contribution deduction. d. When depreciable property is gifted to another individual taxpayer, the depreciation recapture potential is extinguished.|