Ask Question
14 May, 06:28

Ralph gives his daughter, angela, stock (basis of $8,000; fair market value of $6,000). no gift tax results. if angela subsequently sells the stock for $10,000, what is her recognized gain or loss?

a. $10,000

b. $4,000

c. $0

d. $2,000

e. none of these choices are correct.

+2
Answers (2)
  1. 14 May, 06:38
    0
    D) $2,000

    Explanation:

    Angela's basis on the stocks will be the same as her father's. Since she sold the stocks, her basis will be $8,000, so her recognized gains will = selling price - basis = $10,000 - $8,000 = $2,000

    The IRS allows the donee (Angela) to use the doners (Ralph) basis when selling an asset received as a gift in order to determine the realized gain/loss.
  2. 14 May, 08:24
    0
    Answer: D. $2000

    Explanation:

    Profit (gain) = selling price - cost price

    Cost price = $8000

    Selling price = $10000

    Profit (gain) = $10000 - $8000

    = $2000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Ralph gives his daughter, angela, stock (basis of $8,000; fair market value of $6,000). no gift tax results. if angela subsequently sells ...” 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