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kodGreya [7K]
3 years ago
8

Luciana, a nonshareholder, purchases a condominium for her employer for $85,000. The fair market value of the condominium is $12

0,000. What is Luciana’s basis in the condominium and the amount of any income as a result of this purchase?
Business
1 answer:
krok68 [10]3 years ago
5 0

Answer:

Luciana’s basis in the condominium is $120000.

Explanation:

The transfer or sale of property by the employer to the employee at less than the fair market value then it is considered as the compensation income or dividend income. However, it should be included in the income. The difference in cost and fair market value ($120000 - $85000 = $35000) is considered as the gross income which is taxable for the year.

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On the other hand, a double-blind study is one in which the researchers and the participants ignore who is receiving the treatment, which guarantees there is objectivity. This occurs in the study presented because neither the researcher nor the subjects known who received the herbal mix. Thus, statement C (This study is double-blind) is true.

Finally, a study is classified as observational if there is not intervention but the researchers just observe participants to study a phenomenon. This does not occur in the study presented because there is an intervention through the herbal treatment, and therefore the study is not observational.

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