Question
F gives 100 shares of stock to his daughter, D.He had acquired the stock in 1995 for $20,000.At the time of the gift, the fair
F gives 100 shares of stock to his daughter, D.He had acquired the stock in 1995 for $20,000.At the time of the gift, the fair market value of the stock is $50,000.F paid a gift tax of $4,000.The taxable gift was $ 40,000.
a.Does the receipt of the stock result in income for D?
No, because it is a gift
b.What is D's basis for the stock?
Would the answer be 20,000?
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Managerial Accounting
Authors: Carl Warren
14th Edition
1337516147, 978-1337270595
