Virginia Gave Stock with an Adjusted Basis of $8,000 and an FMV

question 4

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) $1,000 loss.
• B) $1,000 gain.
• C) $2,000 gain.
• D) none of the above