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Problem 14-49 (LO. 3) Ella and Emma are twin sisters who live in Louisiana and Mississippi, respectively. Ella is married to Frank, and Emma
Problem 14-49 (LO. 3) Ella and Emma are twin sisters who live in Louisiana and Mississippi, respectively. Ella is married to Frank, and Emma is married to Richard. Frank and Richard are killed in an auto accident in 2021 while returning from a sporting event. Ella and Frank jointly owned some farmland in Louisiana, a community property state (value of $940,000, cost of $450,000). Emma and Richard jointly owned some farmland in Mississippi, a common law state (value of $940,000, cost of $450,000). Assume that all of Frank's and Richard's property passes to their surviving wives. Louisiana is a community property state and Mississippi is a common law state. a. Ella's new basis for the land is $ b. Emma's new basis for the land is $ c. What causes the difference? Ella's land is Emma's land is Therefore, her basis is Therefore, her basis is
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