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Part 1a: Simon transfers 100 shares of Brown Corporation stock to Samantha as part of a divorce settlement. The cost of the stock to Simon

Part 1a:

Simon transfers 100 shares of Brown Corporation stock to Samantha as part of a divorce settlement. The cost of the stock to Simon is $11,500, and the stocks value at the time of the transfer is $14,300. Samantha later sells the stock for $17,600. What is Samanthas basis in the stock at the time of her sale of stock?

a) $6,100

b) $14,300

c) $11,500

d) $3,300

Part 1b:

On December 15, 2019, Monica, a cash basis taxpayer, received a gift from her parents for her birthday and decided to use the cash to purchase a certificate of deposit. She pays $89,000 for a 24-month certificate of deposit on January 1, 2020. The certificate is priced to yield 4.5%, with interest compounded annually. No interest is paid until maturity, when Monica receives $97,190. What is Monicas gross income from the certificate of deposit in 2021?

a) $4,374

b) $4,504

c) $4,005

d) $4,185

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