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Katena32 [7]
3 years ago
9

Joycelyn gave a diamond necklace to her granddaughter Emma. Joycelyn had purchased the necklace in 1980 for $20,000. The FMV of

the necklace at the time of the gift was $50,000. After deducting the annual exclusion, the amount of the gift was $35,000. Gift taxes of $10,000 were paid. What is Emma's adjusted basis in the necklace?
Business
1 answer:
adell [148]3 years ago
5 0

$28,571 is Emma's adjusted basis in the necklace.

<h3><u>Explanation:</u></h3>

Emma's basis will be summation of her grandmother's basis in the property and the share of the gift tax attributable to the appreciation corresponding to the gifted date.

$20,000 + [$10,000 × ($50,000-20,000) / $35,000]

$20,000 + [($10,000 × $30,000) / $35,000]

$20,000 + [($10,000 × $30,000) / $35,000]

$20,000 + [$3000,000,000 / $35,000]

$20,000+$8571

$28,571.

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A market that has just one supplier is considered a monopolist at the other extreme. Examples include the fact that the National Hockey League is the only provider of top-notch professional hockey matches in North America, Hydro Quebec is the province of Quebec's sole electricity supplier, and Via Rail is the only provider of passenger rail services between Windsor, Ontario, and the city of Quebec.

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To learn more about Equilibrium from the given link.

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3 0
2 years ago
Assume that Wizard Internet is operating as a general partnership, what is Caleb's personal tort liability for Anna's actions wi
shutvik [7]

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3 years ago
What impact can good accountability mechanisms have on the admissibility of evidence in court cases? enables encryption of the e
ludmilkaskok [199]

Answer:

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7 0
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g The company plans a 4-for-1 stock split. How many shares will you own and what will the share price be after the stock split?
Nata [24]

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7 0
3 years ago
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