Steve Gave Stock with an Adjusted Basis of $7,000 and an FMV

question 41

Multiple Choice

Steve gave stock with an adjusted basis of $7,000 and an FMV of $10,000 to Alice. No gift tax was paid. Later, Alice sold the stock for $12,000. The gain Alice will recognize on the sale is

• A)$5,000.
• B)$2,000.
• C)$0.
• D)none of the above

---

Definitions:

Unique Identifiers

Codes or numbers assigned to individuals or items to distinctly identify them from others in a set or system.

Malpractice

Professional negligence by act or omission by a healthcare provider, where the treatment provided falls below the accepted standard of practice and causes harm to a patient.

Dereliction

A state of neglect or disrepair, often used to describe property that has been abandoned or not maintained, or the failure to fulfill duties or obligations.

Directly

In a straight line or manner, without deviating; also means without intervening factors or intermediaries.