An elderly father owns a classic car that was purchased many years ago for $7,500. The father dies and bequeaths the car to his son. At the date that the car was bequeathed to the son, the car was valued at $20,000. A few years later, the son sells the car for $22,500. What is the tax consequence to the son

The available options are:

A. No capital gain or loss because the item sold was personal property

B. $2,500 long term capital gain

C. $12,500 long term capital gain

D. $22,500 long term capital gain

$2,500 long term capital gain

Explanation:

Given that the classic car, that is an item under consideration is inherited, therefore, the cost basis to the recipient is the market value at the date of death.

Hence, the market value of the date of death is $20,000

The amount the classic car is sold is $22,500

To get the capital gain or loss, subtract the value at the date of death from the amount sold, which is $22,500 - $20,000 = $2,500

Hence, the correct answer is $2,500 long term capital gain

Check Explanation

Step-by-step explanation:

Some information required to answer this question is missing, but on a general basis, here goes the carefully researched response.

Majority of popular truck ladders are about 75 to 105 feet long. There are special truck ladders that reach up to 125 feet.

The length of a truck ladder is naturally limited by weight. The weight has to not be too much so that the truck can still move at a good enough speed on the roads. The weight of these ladders are primarily dependent on the strength of the metal used to make them.

At the top of these ladders, on a windy day, eind interference can cause the ladder to move back and forth all over the place, rhereby endamgerimg lives further and using a light material because we want the truck to still be able to move, will not work because light ladders especially, are easily carried by wind.

The 105-foot aerial ladder can reach 7 to 8 floors depending on the height of the floors.

The 25th floor of an office building can be accessed using a ladder that is about 225 ft long and that simply, is not feasible at all to manufacture this ladder considering the required weight and how too far away in the air this ladder would be, there would be little or no control over this.

Hence, a more realistic solution would be an helicopter that is steadied to slowly get people out of that floor.

Also, if the elevators or stairs are still accessible, these are better alternatives than a 225 ft long ladder aiming to reach the 25th floor.

Hope this Helps!!!