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Dale purchased Blue Corporation stock four years ago for $1,000 as an investment. He intended to hold the stock until funds were needed to help
Dale purchased Blue Corporation stock four years ago for $1,000 as an investment. He intended to hold the stock until funds were needed to help pay for hid daughter's college education. Today the stock has a $6,500 FMV and Dale decides to sell the stock and give the proceeds, less any taxes paid on the sale, to Tammy, his 25-year-old daughter. dale's marginal tax rate is 30%. Tammy has no other gross income and receives more than half of her support from Dale. A) what advice would you give to Dale? B) What is the cash savings if Dale follows your advice? C) What advice would you give Dale if Tammy was 17 years old
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