Question
Tanya gave her nephew, Liam, 100 shares of Bridge Corporation stock that she purchased 6 months ago for $10,000. At the time of the gift,
Tanya gave her nephew, Liam, 100 shares of Bridge Corporation stock that she purchased 6 months ago for $10,000. At the time of the gift, the fair market value of the stock was $12,000. Which of the following statements concerning the stock is correct? If Tanya sold the stock, she would have realized a long- term capital gain. Liam's basis in the stock is $10,000. Liam's basis in the stock is $12,000. If Liam sells the stock immediately after the gift, he will realize a long-term capital gain.
$5,000 short-term capital gain. | ||
$5,000 long-term capital gain. | ||
$3,000 short-term capital gain. | ||
$3,000 long-term capital gain. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started