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Herb gave Randy 500 shares of Ultra Corporation common stock in 2012. Herb paid $8,000 for the stock in 2009. At the date of the
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Herb gave Randy 500 shares of Ultra Corporation common stock in 2012. Herb paid $8,000 for the stock in 2009. At the date of the gift, the fair market value of the stock was $6,000. No gift tax was paid. If Randy sells the stock for $4,500, he will recognize:
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A. no gain or loss.
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B. a $4,500 gain.
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C. a $1,500 loss.
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D. a $3,500 loss.
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E. none of the above.
Herb gave Randy 500 shares of Ultra Corporation common stock in 2012. Herb paid $8,000 for the stock in 2009. At the date of the gift, the fair market value of the stock was $6,000. No gift tax was paid. If Randy sells the stock for $4,500, he will recognize:
A. no gain or loss.
B. a $4,500 gain.
C. a $1,500 loss.
D. a $3,500 loss.
E. none of the above.
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