When multiple assets are acquired in a single transaction, the contract price must be allocated. The seller prefers a high allocation for nondepreciable assets.

TrueFalse

b$.$The donor, who makes gifts of appreciated property, avoids income tax on the unrealized gain that would have occurred had the donor sold the property.

TrueFalse

c$.$Taxpayers should generally make gifts of depreciated property $($property that, if sold, would produce a realized loss$)$ because the donor receives an income tax deduction for the unrealized loss element.

TrueFalse

d$.$A taxpayer should generally make bequests of appreciated property in his or her will, so that both the decedent and the heir can avoid income tax on the unrealized gain.