Agnes sold 50 shares of ABC stock to her son, Steve, in year 4 for $42,000. She

Question:

Agnes sold 50 shares of ABC stock to her son, Steve, in year 4 for $42,000. She bought the stock eight years ago for $50,000. Steve sold the stock to an unrelated party in year 6 for $60,000. How much gain will Steve recognize from the sale in year 6?

a. $0

b. $10,000

c. $ 18,000

d. $60,000

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