Question
Daniel (father) purchased stock with a fair market value of $112,000 from his son, Thomas, for $96,000. Thomas cost basis in the stock at the
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Daniel (father) purchased stock with a fair market value of $112,000 from his son, Thomas, for $96,000. Thomas cost basis in the stock at the date of sale was $128,000. Daniel sold the same stock to an unrelated party for $144,000. What is Daniels recognized gain from the sale?
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$16,000
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$48,000
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$0
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$32,000
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Auditing A Practical Approach
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren
3rd Canadian edition
1-119-40285-5, 111940276X, 978-1119566007
