Curt Owns the Following Assets Which He Gives to His

question 107

Multiple Choice

Curt owns the following assets which he gives to his daughter Carla. No gift tax results. $\begin{array}{lll}&&\text { Fair Market }\\&\text { Basis }&\text { Value }\\\text { Land } & \$ 200,000 & \$ 400,000 \\\text { Securities } & 800,000 & 600,000\end{array}$ Both items have been held by Curt as an investment for more than one year. If Carla immediately sells these assets for $1 million ($400,000 + $600,000) , she recognizes:

• A)No gain or loss.
• B)A $200,000 LTCG and no loss.
• C)A $200,000 STCG and $200,000 STCL.
• D)A $200,000 STCG and no loss.
• E)A $200,000 LTCG and $200,000 LTCL.

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