In 2018, Angel purchased 260 shares of Flowers R Us stock at a cost of $10,600 as an investment. In 2023, when the fair market value was $12,400, Angel gave the stock to a relative, Alex. Assuming no gift tax was paid, if the stock sells for $14,000, Alex will recognize: Multiple Choice no gain or loss. $1,600 gain. $1,800 gain. $3,400 gain.
In 2018, Angel purchased 260 shares of Flowers R Us stock at a cost of $10,600 as an investment. In 2023, when the fair market value was $12,400, Angel gave the stock to a relative, Alex. Assuming no gift tax was paid, if the stock sells for $14,000, Alex will recognize: Multiple Choice no gain or loss. $1,600 gain. $1,800 gain. $3,400 gain.
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 55P
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Transcribed Image Text:In 2018, Angel purchased 260 shares of Flowers R Us stock at a cost of $10,600 as an investment. In 2023, when the fair market value was $12,400,
Angel gave the stock to a relative, Alex. Assuming no gift tax was paid, if the stock sells for $14,000, Alex will recognize:
Multiple Choice
no gain or loss.
$1,600 gain.
$1,800 gain.
$3,400 gain.
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