Discuss what is marks basis in the stock

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Reference no: EM131762384

Work the problems and enter your solutions on the blanks provided. Use the colored areas to show your work. Amounts should be properly labeled and excel formulas should be used as applicable. You may add or delete rows as needed.

Problem 1:

Mark received a gift of 500 shares of Jackson Corporation stock from his Aunt Betsy on June 30, 2016. On the date of the gift, the fair market value of the stock was $86,000. Aunt Betsy had purchased the stock in 2001 for $44,000. The gift tax paid by Aunt Betsy in connection with this gift was $12,000. This is the only gift made by Aunt Betsy to Mark during 2016.

a) What is Mark's basis in the stock?

b) If Mark sells 300 shares of the stock on November 15, 2016 for $33,000, what is the amount and character of the gain or loss that will be included in Mark's adjusted gross income for 2016?

Reference no: EM131762384

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