QUESTION 13 Nikeya seils land (adjusted basis of $120,000) to her adult son, Shamed, for its appraised value of $95,000. Which of the following statements is correct? a. Nikeya's loss is disallowed and, if Shamed subsequently sells the land for $112,000, he has no recognized gain or loss. b. Shamed's adjusted basis for the land is $120,000 (895,000 price he paid + $25,000 disallowed loss for Nikeya). oc Nikeya's recognizes a loss of $25,000 ($95,000 amount realized - $ 120,000 adjusted basis). O d. Shamed recognizes a gain of $17,000 on the subsequent sale. QUESTION 14 Olaf was injured in an automobile accident and received $25,000 for his physical injury, $50,000 for his loss of income, and S10,000 punitive damages. As a result of the award, the amount Olaf must include in gross income is: a. 585,000 b. $50,000 OC $10,000 d. $60,000