In the Current Year, Bonnie, Who Is Single, Sells Stock

question 27

Multiple Choice

In the current year, Bonnie, who is single, sells stock valued at $60,000 to Linda for $15,000. Later that year, Bonnie gives Linda $25,000 in cash. Bonnie's taxable gifts from these transfers total

• A) $55,000.
• B) $70,000.
• C) $25,000.
• D) $59,000.

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Definitions:

Statement of Cash Flows

A financial report that consolidates information about all cash received and expended by a business.

Cash Receipts

The collection of money, such as income from sales or assets being liquidated, recorded during an accounting period.

Cash Payments

Money transactions made to settle obligations or purchases.

CPAs

Certified Public Accountants, professionals who have met the education and licensing requirements to offer accounting services to the public, including audits and financial planning.