income tax

Question 20 (1 point)

Years ago, Frank purchased stock in ABC company for $23,000. Last year, Frank sold the stock to his daughter, Deb, for $12,000 (its current market value). Deb later sells the shares for $15,000. Deb's adjusted basis in the stock and her recognized gain or loss on the sale are:

Question 20 options:

1) $12,000 adjusted basis, $0 recognized gain

2) $23,000 adjusted basis,$0 recognized gain

3) $23,000adjusted basis,$3,000 recognized gain

4) $12,000adjusted basis,$3,000 recognized gain

5) $12,000adjusted basis,$8,000 recognized loss