Steve Gave Stock with an Adjusted Basis of $7,000 and an FMV

question 41

Multiple Choice

Steve gave stock with an adjusted basis of $7,000 and an FMV of $10,000 to Alice. No gift tax was paid. Later, Alice sold the stock for $12,000. The gain Alice will recognize on the sale is

• A)$5,000.
• B)$2,000.
• C)$0.
• D)none of the above

---

Definitions:

Home-cooked Evening Meal

A dinner prepared and served at home from fresh ingredients, apart from fast food or pre-packaged meals.

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs and emotions about oneself.

Spinal Meningitis

An inflammation of the protective membranes covering the brain and spinal cord, potentially caused by infection and requiring urgent treatment.

High Blood Pressure

A condition characterized by the force of the blood against artery walls being too high, potentially leading to cardiovascular diseases.