1. Realized gain or loss is measured by the difference between the amount realized from the sale or other disposition of property and the propertys adjusted basis at the date of disposition.

1. True
2. False

2. If WalMart stock increases in value during the tax year by $6,000, the amount realized is a positive $6,000.

1. True
2. False

3. The fair market value of property received in a sale or other disposition is the price at which property

will change ands between a willing seller and a willing buyer when neither is compelled to

sell or buy.

a. True

b. False

4. Expenditures made for ordinary repairs and maintenance of property are not added to the original basis in the determination of the propertys adjusted basis whereas capital expenditures are

added to the original basis.

a. True

b. False