Question
On February 9, 2016, Harry sold stock with a cost of $12,000 to his sister Florine for $7,000, its fair market value. On July 30,
On February 9, 2016, Harry sold stock with a cost of $12,000 to his sister Florine for $7,000, its fair market value. On July 30, 2021, Florine sold the same stock for $16,200 to a friend in a bona fide transaction. What is the proper treatment in 2021 for these transactions?
| Neither Harry nor Florine has a recognized gain or loss.
| ||
| Harry has a recognized loss of $5,000. | ||
| Florine has a recognized gain of $4,200.
| ||
| Florine has a recognized gain of $9,200. |
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College Accounting Chapters 1-26
Authors: Douglas J. McQuaig, Patricia A. Bille
6th Edition
0395796997, 978-0395796993
