In March 2020, Lonnie received 200 shares of stock with a FMV of $20,000 as a gift from her grandmother. Lonnies grandmother had purchased the stock five years earlier on June 18 for $75 per share.

a) What is Lonnies basis in the stock?

b) What is the holding period (L/T or S/T) of the stock in Lonnies hands?

c) What is the nature and amount of the gain or loss if Lonnie sells 100 shares of the stock in two years for $105 per share?

d) Answer parts a, b and c again, this time assuming that Lonnie received the stock as part of an inheritance, rather than a gift from her grandmother.