Terry Owns Lakeside, Inc $\begin{array}{lll}\text { Terry's Recognized Loss }&\text { Jake's Recognized Gain(Loss) }&\text { Pamela'sBasis }\\\end{array}$

question 80

Short Answer

Terry owns Lakeside, Inc. stock (adjusted basis of $80,000), which she sells to her brother, Jake, for $64,000 (its fair market value). Eighteen months later, Jake sells the stock to Pamela, a friend, for $78,000 (its fair market value). What is Terry's recognized loss, Jake's recognized gain or loss, and Pamela's adjusted basis for the stock? $\begin{array}{lll}\text { Terry's Recognized Loss }&\text { Jake's Recognized Gain(Loss) }&\text { Pamela'sBasis }\\\end{array}$
A) $\begin{array}{lll}&&\$-0- &&&&&&&&& \$-0- &&&&&&&&& \$ 78,000 \\\end{array}$
B) $\begin{array}{lll}&&\$-0- &&&&&&&&& \$ 14,000 && &&&&&&&\$ 64,000 \\\end{array}$
C) $\begin{array}{lll}&&\$-0- &&&&&&&&& \$ 14,000 &&&&&&&&& \$ 78,000 \\\end{array}$
D) $\begin{array}{lll} && \$ 16,000&&&&&&& & \$ 14,000 &&&&&&&&&& \$ 78,000 \end{array}$
E) $\text { None of these. }$

• A)\(\begin{array}{lll}
• &&\$-0- &&&&&&&&& \$-0- &&&&&&&&& \$ 78,000 \\\end{array}\)
• B)\(\begin{array}{lll}&&\$-0- &&&&&&&&& \$ 14,000 && &&&&&&&\$ 64,000 \\\end{array}\)
• C) \(\begin{array}{lll}&&\$-0- &&&&&&&&& \$ 14,000 &&&&&&&&& \$ 78,000 \\\end{array}\)
• D) \(\begin{array}{lll} && \$ 16,000&&&&&&& & \$ 14,000 &&&&&&&&&& \$ 78,000 \end{array}\)
• E)\(\text { None of these. }\)

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Definitions:

Clevis Pins

Clevis pins are a type of fastener commonly used in mechanical linkages, allowing for rotation or movement of the connected parts while maintaining alignment.

Quick Release Fasteners

Mechanisms designed to fasten components together securely while also allowing for rapid removal or disassembly without requiring tools.

Semi-Permanent

Describes a connection or assembly that is designed to be disassembled and reassembled, but not intended for frequent changes.

Standard Taper Pins

Standard Taper Pins are conically shaped metal pins used to position and secure two parts together, allowing for easier alignment and assembly due to their tapered design.