Virginia Gave Stock with an Adjusted Basis of $8,000 and an FMV

question 45

Multiple Choice

Virginia gave stock with an adjusted basis of $8,000 and an FMV of $10,000 to Carmen. No gift tax was paid on the transfer. Carmen then sold the stock for $9,000. The gain or loss Carmen will recognize on the sale is

• A)$2,000 gain.
• B)$1,000 gain.
• C)$1,000 loss.
• D)none of the above

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Definitions:

Myelin

A fatty substance that surrounds and insulates the nerve fibers in the central and peripheral nervous systems, facilitating the rapid transmission of nerve impulses.

Axons

Long, slender projections of nerve cells that conduct electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Nerve Impulses

Electrical signals that are transmitted along nerve fibers in the nervous system.

Synapse

A junction between two nerve cells, consisting of a minute gap across which impulses pass by diffusion of a neurotransmitter.