Problem 14-56 (LO. 3, 5) Hun, age 93, has accumulated substantial assets during his life. Among his many assets are the following, which he is considering giving to Koji, his grandson. Asset Adjusted Basis Fair Market Value $900,000 $ 700,000 Silver Corporation stock Red Corporation stock 70,000 71,000 Emerald Corporation stock 200,000 500,000 Hun has been in ill health for the past five years. His physician has informed him that he probably will not live for more than six months. Assume that the current fair market values are applicable for the next six months and no gift taxes will be incurred. Which of the stocks should be transferred as gifts and which as inheritances. a. Silver Corporation: 900,000 and his loss basis will be $ 700,000. If the If the stock is transferred as a gift, Koji's gain basis will be $ stock is transferred as an inheritance, Koji's basis will be $ a gift X. Therefore, Silver Corporation stock should be transferred as b. Red Corporation: 70,000 and his loss basis will be $ X. If the If the stock is transferred as a gift, Koji's gain basis will be $ stock is transferred as an inheritance, koji's basis will be $ an inheritance 71,000 . Therefore, Red Corporation stock should be transferred as c. Emerald Corporation: 200,000 and his loss basis will be $ X. If the If the stock is transferred as a gift, Koji's gain basis will be $ stock is transferred as an inheritance, Koji's basis will be $ as an inheritance X. Therefore, Emerald Corporation stock should be transferred Feedback Check My Work A donor can achieve several tax advantages by making gifts of appreciated property