u. 313,JUU IU55. 9. Jack gave his nephew, Stephen, 1,000 shares of ABC Corporation. Jack had an adjusted basis of $10,000 for all 1,000 shares and the fair market value at the date of the gift was $45,000. If Stephen sells the stock three days after receiving the gift for $46,000, what is his capital gain/loss? a. No gain or loss. b. $1,000 gain. c. $36,000 gain. d. $46,000 gain. 10. Jack had been working with an estate planner for several years prior to his death. Accordingly, Jack made many transfers during his life in an attempt to reduce his potential estate tax burden, and Jack's executor, Tom, is thoroughly confused. Tom comes to you for clarification of which assets to include in Jack's gross estate. Which of the following transactions will not be included in Jack's gross estate? a. Jack gave $40,000 to each of his three grandchildren two years ago. No gift tax was due on the gifts. b. Jack purchased a life insurance policy on his life with a face value of $300,000. Jack transferred the policy to his son two years ago. C. Jack and his wife owned their personal residence valued at $250,000 as tenants by the entirety. d. After inheriting a mountain vacation home from his mother, Jack gifted the vacation home to his daughter to remove it from his gross estate. Jack continued to use the property as a weekend getaway and continued all maintenance on the property