In Addition to Other Gifts, Megan Made a Gift of Stock

question 108

Multiple Choice

In addition to other gifts, Megan made a gift of stock to Jeri in 1976. Megan had purchased the stock in 1974 for $7,500. At the time of the gift, the stock was worth $20,000. If Megan paid $850 of gift tax on the transaction in 1976, what is Jeri's gain basis for the stock?

• A) $7,500
• B) $8,350
• C) $9,017
• D) $20,000
• E) None of the above

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Definitions:

Months

Units of time in calendars, typically involving a period of approximately 30 days or four weeks.

Hold Bottle

The action of supporting a feeding bottle during infant feeding to control the flow of milk or formula.

Months

Units of time, typically used to measure periods closer to the length of the natural period related to the motion of the Moon; each month roughly corresponds to one cycle of the moon's phases.

Lithotomy

A medical position used during examinations or surgical procedures, where the patient lies on their back with legs raised and feet in stirrups.