QUESTION 17 In the current year, Alex sold stock that had been given to her by her aunt, Nell. Nell purchased the stock 5 years ago and had a basis of $4,000. The stock had a fuir market value of $2,000 when she gave it to Alex Alex held on to the stock for 3 months before selling it for $1,800. Which of the following statements is correct regarding the tax treatment on the sale of the stock? a. Alex will recognize a long-term capital loss of $2,200. b. Alex will recognize a short-term capital loss of $2,200, c. Alex will recognize a long-term capital loss of $200 d. Alex will have no gain or loss on the sale, Alex will recognize a short-term capital loss of $200 QUESTION 18 When property is converted from personal use to business use, which of the following statements is INCORRECT? a. The basis in the property will be the lesser of cost or fair market value at date of conversion b. The taxpayer can recognize a loss on converted property even though it was originally purchased as personal use property c. The taxpayer may actually pay tax on again if the property is sold for more than it's adjusted basis for business use, but sold for less than the original purchase price, d. All of the above statements are correct