If the fair market value (FMV) of a gift on the date it's given is less than the donor's adjusted basis, what is the basis used to calculate a gain on the sale of the gifted property?

The donor's adjusted basis on the date of the gift.

The donor's purchase price.

The lower of the donor's adjusted basis or the FMV on the date of the gift.

The FMV of the property on the date of the original purchase.

Which of these cases would be subject to the "kiddie tax"?

Mina, age 12, earned $800 in dividends, with no other income.

Jordan, age 15, worked as a lifeguard all summer and earned $2,800 with no other income.

Bophy, age 14, earned $1,000 in interest and had a $1,800 royalty from a family oil well. She had no other income.

Victor, age 19, is taking a year off before starting college. He received $4,200 in dividends with no other income.