Macs 24-year-old daughter, Alana, is a full-time student. In 2017, Mac gives Alana 600 shares of High-growth
Question:
Mac’s 24-year-old daughter, Alana, is a full-time student. In 2017, Mac gives Alana 600 shares of High-growth stock. Mac purchased the stock 10 months ago at $20 per share. On the gift date, the stock is worth $35 per share. After the gift, Highgrowth declares and pays a $170 dividend to Alana. The next month, Alana sells her 600 shares for $38 per share. Mac and Alana are in the 33 and 15 percent marginal tax brackets, respectively.
a. How much must Alana and Mac include in gross income in 2017?
b. What family tax savings are achieved through this gift?
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Related Book For 
Taxation For Decision Makers 2018
ISBN: 9781119373735
8th Edition
Authors: Shirley Dennis Escoffier, Karen Fortin
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