1) In May 2021, Mamie gave 1,000 shares of stock to Louisa as a gift. The fair market value of the stock on the date of gift was $12 per share. Mamie had originally purchased the stock five years ago for $16 per share.

What amount of gain or loss will Louisa recognize on the sale of her shares on December 31, 2021 if she sells them for $19 per share?

A. No gain or loss

B. $3,000 gain

C. $7,000

D. $16,000

E. $19,000

2) In January 2021, Trevor gave 1,000 shares of stock to Jalen as a gift. The fair market value of the stock on the date of gift was $12 per share. Trevor had originally purchased the stock five years ago for $16 per share.

What amount of gain or loss will Jalen recognize on the sale of his shares on December 31, 2021 if he sells them for $14 per share?

A. No gain or loss

B. $2,000 gain

C. $2,000 loss

D. $4,000 gain

E. $4,000 loss

3) In April 2021, Anna gave 1,000 shares of stock to Knox as a gift. The fair market value of the stock on the date of gift was $12 per share. Anna had originally purchased the stock five years ago for $16 per share.

What amount of gain or loss will Knox recognize on the sale of his shares on December 31, 2021 if he sells them for $9 per share?

A. No gain or loss

B. $3,000 loss

C. $4,000 loss

D. $7,000

E. $8,000

4) In 2019, Pamela purchased a commercial sewing machine for use in her childrens clothing business for $20,000. In 2021, she sold the machine for $15,000. Between the date of purchase and date of sale, Pamela depreciated the sewing machine by $6,000. What is the amount and character of Pamelas gain?

A. $1,000 Section 1231 gain

B. $1,000 Section 1245 gain

C. $6,000 Section 1231 gain

D. $6,000 Section 1245 gain