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

Examine the role of consumer spending in economic growth and the effects of changes in this spending.

Identify and explain major economic theories related to consumer behavior, including the Permanent Income Hypothesis.

Explain the significance of housing costs in the average American consumer's monthly expenses and the related economic implications.

Discuss the influence of age and life cycle stages on saving rates and consumption patterns.

---

Definitions:

Thighs

The part of the human leg between the hip and the knee, composed of several muscles including the quadriceps and hamstrings.

Auditory Cortex

The region of the brain that is responsible for processing auditory information.

Temporal Lobe

A region of the cerebral cortex involved in processing auditory information and is also key in understanding language and forming memories.

Parietal Lobe

A region of the cerebral cortex involved in sensory processing, including touch, temperature, and pain.