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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Raw and Semifinished

Materials or products that have undergone partial processing but are not yet complete products ready for sale to the end consumer.

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