Arthur,age 99,holds Some Stock Purchased Many Years Ago for $10,000

question 26

Multiple Choice

Arthur,age 99,holds some stock purchased many years ago for $10,000 which is now worth $100,000.He is trying to plan for the eventual disposition of this stock.Arthur's only remaining family member is his grandson.For income tax purposes,Arthur should

• A)sell the stock and gift the proceeds to his grandson.
• B)gift the stock to his grandson.
• C)leave the stock to his grandson as an inheritance.
• D)All of the above will result in the same income tax consequences.

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