In 1973, Fran Received a Birthday Gift of Stock Worth

question 228

True/False

In 1973, Fran received a birthday gift of stock worth $75,000 from her aunt. The aunt had owned the stock (adjusted basis $50,000) for 10 years and paid gift tax of $27,000 on the transfer. Fran's basis in the stock is $75,000-the lesser of $77,000 ($50,000 + $27,000) or $75,000.

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Definitions:

Cognitive Psychology

A branch of psychology focused on studying how people think, perceive, remember, and learn.

Perseverance

Persistent determination in doing something despite difficulty or delay in achieving success.

Tenacity

The quality or state of being very determined or persistent.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society or organization, emphasizing inclusivity and mutual respect.