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Nikeya sells land (adjusted basis of $60,000) to her adult son, Shamed, for its appraised value of $50,000. Which of the following statements is correct?
Nikeya sells land (adjusted basis of $60,000) to her adult son, Shamed, for its appraised value of $50,000. Which of the following statements is correct? (Points : 5) Nikeya's recognized loss is $10,000 ($50,000 amount realized - $60,000 adjusted basis). Shamed's adjusted basis for the land is $60,000 ($50,000 cost + $10,000 disallowed loss for Nikeya). If Shamed subsequently sells the land for $58,000, he has no recognized gain or loss. Only A and B A, B, and C
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