5. In the autumn of 1986, Anas buys a rental building in the countryside for $850,000. In the mid-90's she exchanges the property for a commercial property in city worth $1 million. The exchange is subject to I.R.C. 1031. In 2005, when the commercial property is worth $1.5 million and her basis in the building is $500,000 (due to depreciation deductions), Anas passes away and leaves the property to Anika. What is Anika's basis in the commercial property upon inheriting it? a. $500,000 b. $850,000 c. $1 million d. $1.5 million 6. In 2010, Gloria purchases a gold coin for $20,000. In 2010, when it is worth $15,000, she gifts it to her niece, Pauline. In 2013, when the collector community realizes the coin is quite rare and worth $50,000, Gloria dies. In 2014, Pauline manages to sell the coin for $65,000 in order to fund her studies. What is Pauline's basis in the coin at the time of the sale in 2014? a. $15,000 b. $20,000 c. $50,000 d. $65,000 7. All of the following are examples of an economic arrangement representing a partnership for federal tax purposes except: a. Fred and Stanley purchase and actively run a rental business of a six-story apartment building in Queens, NY b. Maple and Ashley form an LLP to purchase a bakery and run a pastry business c. Carter and Nittin buy a vehicle to run a taxi business. Carter takes the day shift and Nittin takes the night shift. They share expenses evenly but keep only what they earn during their shift. d. Jackson and Francesca start a bicycle touring business and share expenses and profits equally