Question
Benjamin received an gift from his mother, Abigail, 1,000 share of Facebook stock. Abigail purchased the Facebook stock in May 2009 for a cost of
Benjamin received an gift from his mother, Abigail, 1,000 share of Facebook stock. Abigail purchased the Facebook stock in May 2009 for a cost of $100 per share. On the date of the transfer Facebook stock was trading at $500 per share. Abigail paid the appropriate gift tax of $30,000 upon completing the gift to Benjamin. What is Benjamins basis in the stock?
- A. $480,000
- B. $530,000
- C. $500,000
- D. $527,000
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
