On July 25, 2017, Marilyn Gives Stock with a FMV

question 927

Multiple Choice

On July 25, 2017, Marilyn gives stock with a FMV of $7,500 and a basis of $5,000 to her nephew Darryl. Marilyn had purchased the stock on March 18, 2017. Darryl sold the stock on April 18, 2018 for $7,800. As a result of the sale, what will Darryl report on his 2018 tax return?

• A) $300 STCG
• B) $2,800 LTCG
• C) $300 LTCG
• D) $2,800 STCG

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Definitions:

Chitins

A long-chain polymer of N-acetylglucosamine, a derivative of glucose, and a primary component of the cell walls of fungi and the exoskeletons of arthropods.

Annelids

A phylum of invertebrate animals known as segmented worms, which includes earthworms, leeches, and their relatives, characterized by a segmented body and a coelom.

Two Openings

Refers to organisms with a digestive system that has a distinct mouth and anus, allowing for a one-way flow of food and waste.

Cnidarians

A phylum of aquatic invertebrates known for their distinctive body structure with a jelly-like substance called mesoglea, radial symmetry, and specialized cells called cnidocytes.