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

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Definitions:

Computer-mediated Interactions

Communication between people that is facilitated by, or takes place through, computer technology, including email, chat rooms, and social media platforms.

Virtual Team

A group of individuals who work together from different geographical locations, facilitated by communication and collaboration technologies.

Distributed Leadership

A leadership approach where authority and decision-making responsibilities are spread among multiple members within a group or organization, emphasizing collaboration and empowerment.

Task Activities

Actions taken by team members that directly contribute to the group’s performance purpose.