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Ken sells land (AB $300,000) to his mother, Nell, for its FMV of $230,000. Which of the following statements is true? a. If Nell sells
Ken sells land (AB $300,000) to his mother, Nell, for its FMV of $230,000. Which of the following statements is true?a. If Nell sells the land for $350,000, her recognized gain is $120,000. b. If Nell sells the land for $180,000, her recognized gain is $120,000. c. Ken's recognized loss is $70,000. d. Nell's AB in the land is $300,000 e. None of the above
a. If Nell sells the land for $350,000, her recognized gain is $120,000.
b. If Nell sells the land for $180,000, her recognized gain is $120,000.
c. Ken's recognized loss is $70,000.
d. Nell's AB in the land is $300,000
e. None of the above
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