47. Julia receives 1000 sharess of Cookery co stock form her grandfather as a weddiing present. The shares are selling for $24 per share on the date of the gift. Grandfather paid $8000 for them 4 years earlier. He pays $3000 in gift tax on the transfer of the shares to Julia.

a) What is Julia's basis in the Cookery Co shares?

b) Two months after her wedding. Julia wants to take a trip to Europe. To get a $500 commision on the sale. What is Julia's gain or loss on the sale of the 400 shares? What is her holding period for the shares?

48. Calculate the basis for gain and basis for loss and the taxable gain or deductible loss for the following gifts which are received and sold in the current year:

Donor's Adjusted basis Fmv at Time of gift Gift tax paid Selling price

a. $100000 $400000 $40000 $350000

b. $100000 $80000 $8000 $70000

c. $100000 $30000 $6000 $40000

53. Alex begins using his automobile for business purposes in his new job. The automobile cost $25000 and has a fair market value of $9000 on the date of the conversion to business use.

a) WHAT is alex's initial basis in the automobile? Explain

b) What is Alex's basis for computing depreciation on the automobile? Explain