QUESTION 4 In January, Tom sold stock with cost basis of $26,000 to his brother, Terry, for $24,000, the fair market value of the stock on the date of sale. Five months later, James soid the same stock through his broker for $29,000. What is the tax effect of these transactions? a Disallowed loss to Terry of $2,000; gain to Tom of $1,000. b. Disallowed loss to Tom of $2,000; gain to Terry of $3,000. Oc Deductible loss to Tom of $2,000; gain to Terry of $3,000. Od. Disallowed loss to Tum of $2,000; gain to Terry of $1,000 e. None of the above QUESTION 5 On June 2, 2019, Lenny's TV Sales sold Jeff a large HD TV on account for $12,000. Lenny's TV Sales uses the accrual method. In 2020, when the balance on the account was $8,000, Jeff filed for bankruptcy. Lenny was notified that he could reasonably expect to receive $1,000 of the amount owed to him. In 2021 final settlement was made and Lenny received $1,000. How much bad debt loss can Lenny deduct in 20207 a. So b. $7,000 c $8,000 d. $12,000 e. None of the above. UESTION 6 ve and Submit to save and submit. Click Save All Answers to save all answers. Sa MacBook Air