Kanye will recognize gain on the subsequent sale

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Reference no: EM132016303

1. Leticia sells stock with an adjusted basis of $42,000 to her son, Kanye, for its fair market value of $34,000. Kanye sells the stock two years later for $36,000. Kanye will recognize a gain on the subsequent sale of

A) $0.

B) $2,000.

C) ($6,000).

D) ($8,000).

2. Violet died on August 12, 2017, when she owned securities with a basis of $40,000 and a FMV of $55,000. Carlucci inherited the property and sold it on November 27, 2017 for $73,000. What is Carlucci's reported gain on this sale?

A) $15,000 STCG

B) $15,000 LTCG

C) $18,000 STCG

D) $18,000 LTCG

3. In 2017, Stan, who is single and age 38, received $70,000 of gross income and had $4,000 of deductions for AGI and $5,500 of itemized deductions. Sean's taxable income is

A) $55,000.

B) $55,600.

C) $57,500.

D) $66,000.

Reference no: EM132016303

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