Alice gifted stock to her son, Bob, in year 5. Alice bought the stock in year 1

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Alice gifted stock to her son, Bob, in year 5. Alice bought the stock in year 1 for $8,300. Hie value of the stock on the date of gift was $6,400. Bob sold the stock in year 7 for $15,800. What is Bob's recognized gain or loss on the sale in year 7?

a. $0

b. $7,500 gain

c. $9,400 gain

d. $15,800 gain

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South-Western Federal Taxation 2019 Comprehensive

ISBN: 9781337703017

42th Edition

Authors: David M. Maloney, William A. Raabe, William H. Hoffman, James C. Young

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Question Posted: Jun 02, 2019 10:46 AM

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Alice gifted stock to her son, Bob, in year 5. Alice bought the stock in year 1

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