QUESTION 2

1. George purchased stock in 2015 for $15,500. He gave the stock to his son, William, in 2017. On the date of the gift the FMV of the stock was $11,500 and no gift tax was paid on the transfer. William later sold the stock for $8,000. What is Williams recognize gain or loss on the sell of the stock:

   	a.	Loss of $4,000
   	b.	Gain of $8,000
   	c.	Loss of $7,500
   	d.	Loss of $3,500
   	e.	none of the above

QUESTION 3

1. For the current year, David has salary income of $100,000 and the following property transactions:

   Stock investment sales
   Long-term capital gain	$ 7,000
   Short-term capital loss	(16,000)
   Gain on sale of camper (purchased 4 years ago and used for family vacations)	3,000

   What is Davids AGI for the current year?

   	a.	$100,000.
   	b.	$110,000.
   	c.	$97,000.
   	d.	$94,000.
   	e.	None of the above.