Ida Sells Some Stock to Mae for $20,000 at a Time

question 95

Essay

Ida sells some stock to Mae for $20,000 at a time when the stock is valued at $50,000. Later in the year, she gives
$16,000 in cash.
a) What is the amount of Ida's taxable gifts?
b) How would your answer to Part (a) change if Ida gave the cash to Jonathan instead of to Mae?

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Definitions:

Ebbinghaus

A psychologist known for his work on memory, specifically the discovery of the forgetting curve and the spacing effect.

Shereshevsky

Referring to Solomon Shereshevsky, a Russian journalist with a phenomenal memory, often studied in psychology for his extraordinary mnemonical capacities.

Ebbinghaus

Herman Ebbinghaus, a German psychologist known for his pioneering work on memory, especially the forgetting curve and the spacing effect.

Newly Learned Information

Data or knowledge that has been recently acquired or understood by an individual.