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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Definitions:

Motor Neurons

Neural cells that make up the route for impulses moving from the brain or spinal cord toward muscles or glands.

Efferent

Referring to nerve fibers that carry impulses away from the central nervous system to effectors, such as muscles or glands.

Afferent

Pertaining to nerve fibers that carry sensory information towards the central nervous system.

Indifferent

Showing no particular interest or sympathy; apathetic or uninvolved emotionally.