FREE Trial

In 2017 Ann received 1,000 shares of stock as a gift from her husband, Tim, who purchased them in 2008.

Question:

In 2017 Ann received 1,000 shares of stock as a gift from her husband, Tim, who purchased them in 2008. At the time of the gift, the FMV of the stock was $29,300 and Tim’s basis was $31,000. If Ann sells the stock for $32,834 in 2017, what are the nature and amount of the gain from the sale?

a. $1,834 long-term gain.

b. $3,534 long-term gain.

c. $1,834 short-term gain and $1,700 long-term gain.

d. $1,834 term gain and $1,700 short-term gain.

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 70% (10 reviews)

a 1 …View the full answer


answer-question
Answered By
tutor-profile-image
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others. I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years. I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+ 2+ Reviews 10+ Question Solved
Related Book For  answer-question
Fundamentals Of Taxation 2018

Fundamentals Of Taxation 2018

ISBN: 9781259713736

11th Edition

Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler

See More Books
Question Details
Chapter # 7
Section: Discussion Question
Problem: 39
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: November 19, 2018 12:44:02
See More Questions

Students also viewed these Business questions

Q:
Multiple Choice Questions 1. Which statement is true regarding short-term capital gains? a. If there are a net short-term gain and a net long-term gain, both gains are taxed at regular rates. b. A...
A:
1 b A long term loss offsets a short term gain and if a gain results the gain is......
Q:
In 2015 Ann received 1,000 shares of stock as a gift from her husband Tim, who purchased them in 2006. At the time of the gift, the FMV of the stock was $29,300 and Tim's basis was $31,000. If Ann...
A:
To conclude we can say that Answer a Fe......
Q:
In 2015 Ann received 1,000 shares of stock as a gift from her husband Tim, who purchased them in 2006. At the time of the gift, the FMV of the stock was $29,300 and Tim's basis was $31,000. If Ann...
A:
Answer a Feedback If the FMV at the time of the gift wa......
Q:
A solid conducting cylinder of radius 0.1 m and mass of 4 kg rests on horizontal conducting rails (Figure). The rails, separated by a distance a?= 0.4 m, have a rough surface so the cylinder rolls...
A:
Since the current through the rod is uniformly distributed we may treat th......
Q:
Apply Chebyshev's rule with k = 3 to verify that at least 89% of the observations in any data set lie within three standard deviations to either side of the mean, that is, between x 3s and x + 3s.
A:
If k 3 using Chebyshev s rul......
Q:
Find the area of the surface. The part of the plane 6x + 4y + 2z = 1 that lies inside the cylinder x 2 + y 2 = 25
A:
z f x y 3x 2y and......
Q:
Determine whether the following symbolized arguments are valid or invalid by constructing a truth table for each.
A:
Click to View...
Q:
A Barberton Glass Co. truck was transporting large sheets of glass down the highway. Elliot Schultz was driving his automobile some distance behind the truck. Because of the negligent way that the...
A:
Courts originally held that there can be recovery for just emotional d......
Q:
When creating a subreport, the relationship between the two reports can be defined as? Report Join Master and Child Drill Thru Report Building Q5. How can you assure when passing data from the main...
A:
When creating a subreport in the context of reporting tools or software the relationship betwe......
Q:
Question 1 This question has two parts, (A) and (B). Answer both parts. 100% Liverpool plc is a company that manufactures a number of different types of electrical goods and has a year end of 31...
A:
Q1 A Broadcasting is the largest source of revenue for Liverpool FC In 2018 2019 the club earned approximately 299 3 million euros from broadcasting more than triple than in 2010 2011 The second bigge......
Q:
Francisco, a single taxpayer, has income from his W-2 of $93,250. He also has a short-term capital loss of $7,311 a short-term capital gain of $2,100, and a long-term capital gain of $4,680. What is...
A:
a......
Q:
In 2017 Ann received 1,000 shares of stock as a gift from her husband, Tim, who purchased them in 2008. At the time of the gift, the FMV of the stock was $29,300 and Tims basis was $31,000. If Ann...
A:
a 2......
Q:
Repeat Problem 18.2 for the Cincinnati Reds. In problem Many factors determine the attendance at Major League Baseball games. These factors can include when the game is played, the weather, the...
A:
Let With all the 5 independent variables in the model None of the VIF is 5 The best subset regressio......
Q:
The following are selected transactions of Pendlebury Department Store Ltd. (PDSL) for the current year ending December 31. PDSL is a private company operating in the province of Manitoba. 1. On...
A:
a Here are the journal entries for the transactions February 2 Purchases Debit 46 000 Accounts Payable Credit 46 000 April 1 Truck Debit 50 000 Cash Debit 5 000 Notes Payable Credit 45 000 balance 50......
Q:
Determine the internal shear and moment in the beam as a function of x throughout the beam. 20 kN.m A X- 15 kN m - 2 m Prob. F4-10 5 kN/m 2m jooo B
A:
To determine the internal shear V and moment M in the beam as a function of x throughout the beam we will break the beam into different sections based......
Q:
Tsui Corporation went through a financial reorganization by writing down its buildings by $107,000 and eliminating its deficit, which was $182,000 before the reorganization. As part of the...
A:
To record the financial reorganization of Tsui Corporation following ASPE Accounting Standards for P......
Q:
A certain electrical device has an unknown resistance. You have available a 12 V battery and an ammeter. How would you determine the value of the unknown resistance? Draw the necessary circuit...
A:
To determine the value of an unknown resistance using a 12 V battery and an ammeter you would follow......
Q:
Refer to BE16-12. Assume that Bantry Capital Ltd. follows ASPE and valued the debt component of the instruments first, applying the residual to the equity component. On a date when the bonds had a...
A:
In this scenario Bantry Capital Ltd is retiring bonds early and you want to record the retirement us......
Q:
'Attributing direct costs and absorbing overhead costs to the product/service through an activity-based costing approach will result in a better understanding of the true cost of the final output.'...
A:
The answer to this question should describe cost allocation cost apportionment and absorption within......
Q:
The figure shows a bolted lap joint that uses SAE grade 8 bolts. The members are made of cold-drawn AISI 1040 steel. Find the safe tensile shear load F that can be applied to this connection if the...
A:
The tension in the members controls the design Thi......
Cross Cultural Management A Knowledge Management Perspective 1st Edition - ISBN: 027364680X - Free Book