31. Don gives Chris $20,000 worth of stock for which Don originally paid $14,000. Chris immediately sells all of the stock to pay for his college tuition. Who might pay tax on these transactions and bow much is taxable? Don $20,000 gift tax;Chris SO Do a. b. n $6,000 gift tax; Chris $20,000 income tax n $14,000 gift tax; Chris $6,000 income tax d. Don $6,000 gift tax; Chris $14,000 gift tax e. Don $6,000 gift tax; Chris $6,000 income tax e. Do barber that it is a Martha who agrees 32. Martha and George are getting up there in years. George heard from his good idea to own your home as "joint tenants". He brings this up to and they go to their son, who is a lawyer, to draft the paperwork. Good timing, because months later, George is killed in battle, leaving Martha a widow. With regard to heir home, which demill be the most likely result of their planning and George's untimely e. Martha owns only half the house and the other half is owned by her son. f Martha owns the whole house and can do what she wants with it & The IRS gets the house because Martha has no money to pay the estate tax bill e. Martha will burn the house down so no one else can live in it. 33. Duff receives a gift for Christmas in 2016 from his uncle Axel. The gifted item originally cost Axel $20,000 and was worth $18,000 when the gift was made. Duff has never received any other gifts in his whole life from Axel and was stunned when he opened it on Christmas. Axel has never made any taxable gifts in his whole life and felt it was about time he started. What is the total amount of Duff's taxable gift for 2016? (There are no typos in this problem). f $4,000 g. $20,000 h. $0 i. $18,000 34, Sarah is a 30% partner in the King Partnership. On January 1 , King distributes si 5,000 cash, inventory with a fair value of $20,000 (inside basis of $10,000), and a parcel of land worth $10,000 and basis of $5,000 to Sarah in complete liquidation of her partnership interest. King has no liabilities at the date of the distribution. Sarah's basis in King is $37,000. What is Sarah's basis in the inventory and land? a. $10,000 and $10,000 b. $10,000 and $5,000 c. $20,000 and $2,000 d. $10,000 and $12,000