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Estate Finance Family Tax Plan Questions 1.Larry dies on January 2, 2002 and bequeaths 1 share of David Inc. stock to Jeff that has a

Estate Finance Family Tax Plan Questions

1.Larry dies on January 2, 2002 and bequeaths 1 share of David Inc. stock to Jeff that has a basis of $100,000. On January 2, 2002, 1 share of David Inc. stock has a fair market value of $1 million. On January 2, 2004, Jeff sells the share to Leon for $2 million. How much income does Jeff recognize on the sale? Analyze what Jeff's basis is in the stock and why.

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