On January 15 of the current year, Eileen, age 24, receives stock worth $28,000 as a gift

Question:

On January 15 of the current year, Eileen, age 24, receives stock worth $28,000 as a gift from her parents. Her parents jointly purchased the stock six years ago for $12,000. During the year, Eileen receives $2,100 income on the stock. In December, she sells the stock for $39,000.
a. Assuming this is Eileen's only income for the year, and her parents are in the 33 percent marginal tax bracket, how much income tax does the family save as a result of this gift?
b. Are there any transfer taxes as a result of this gift? Explain.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...