Ask Question
4 February, 01:55

Taxpayer receives stock as a gift from his uncle. The adjusted basis of the stock is $10,000 and the fair market value is $17,000. Taxpayer trades the stock for bonds with a fair market value of $15,000 and $2,000 cash. What are his recognized gain and the basis for the bonds?

+4
Answers (1)
  1. 4 February, 02:01
    0
    The recognized gain and the basis for the bonds is $7.000

    Explanation:

    Consider the following calculations to obtain the recognized gain

    Taxpayer's recognized gain = Sale value of Stock - Adjusted basis value of stock

    = (15000+2000) - 10000 = $7000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Taxpayer receives stock as a gift from his uncle. The adjusted basis of the stock is $10,000 and the fair market value is $17,000. Taxpayer ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers