Marilyn owned 500 shares of Ibis stock that she purchased several years ago for $25,000.This year, she

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Marilyn owned 500 shares of Ibis stock that she purchased several years ago for

$25,000.This year, she sold 200 of the shares to her brother for $7,000, its fair market value, when she wanted money for some plastic surgery. Determine Marilyn’s realized and recognized gain or loss on the sale and her basis in the 300 shares remaining. Determine her brother’s basis in the purchased stock and his realized and recognized gain or loss if he sells the shares for $12,000 the following year.

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Taxation For Decision Makers 2008

ISBN: 9780324654110

2nd Edition

Authors: Shirley Dennis-Escoffier, Karen A. Fortin

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