Problem 42 (adjusted basis, recognized gain or loss)

LO.1, 2, 3 Roberto has received various gifts over the years and has decided to dispose of several of these assets. What is the recognized gain or loss from each of the following transactions, assuming that no Federal gift tax was paid when the gifts were made?

a. In 1986, he received land worth $32,000. The donors adjusted basis was $35,000. Roberto sells the land for $95,000 in 2021.

b. In 1991, he received stock in Gold Company. The donors adjusted basis was $19,000. The fair market value on the date of the gift was $34,000. Roberto sells the stock for $40,000 in 2021.

c. In 1997, he received land worth $15,000. The donors adjusted basis was $20,000. Roberto sells the land for $9,000 in 2021.

d. In 2018, he received stock worth $30,000. The donors adjusted basis was $42,000. Roberto sells the stock for $38,000 in 2021.

e. Build a spreadsheet-based solution that provides the solution to parts (a), (b), (c), and (d) above and uses only the donors basis, the fair market value at the time of the gift, and the selling price as inputs. You may want to use the IF and AND functions together.