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

question 20

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

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Definitions:

Array of Structures

A collection of elements where each element is a structure containing multiple pieces of related data.

Structures

Composite data type in programming that allows for the storage of different types of data.

Ordered Structures

Data structures that maintain their elements in a specific, organized sequence allowing for efficient access and modification.

Linked List

A data structure consisting of nodes where each node contains data and a reference to the next node in the sequence.