Joe received a rare diamond from his grandmother. His grandmother had purchased the diamond 20...
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Accounting
Joe received a rare diamond from his grandmother. His grandmother had purchased the diamond 20 years ago for $20,000. The FMV 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 Joe's adjusted basis in the diamond?
A. 20,000
B. 28,571
C. 30,000
D. 50,000
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