What is sara basis in the stock purchased from fred

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Fred sold stock ($12,000 cost basis) to his sister, Sara, for $9,000. Three years later Sara sold the stock for $14,000 to an unrelated party.

Problem a. What was Fred's recognized loss when he sold the stock to Sara?

Problem b. What is Sara's basis in the stock she purchased from Fred?

Problem c. What is Sara's recognized gain or loss when she sells the stock?

Problem d. If Sara had sold the stock for $11,000, what would be her recognized gain or loss?

Problem e. If Sara had sold the stock for $7,000, what would be her recognized gain or loss?

Reference no: EM132839829

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