Virginia Gave Stock with an Adjusted Basis of $8,000 and an FMV

question 45

Multiple Choice

Virginia gave stock with an adjusted basis of $8,000 and an FMV of $10,000 to Carmen. No gift tax was paid on the transfer. Carmen then sold the stock for $9,000. The gain or loss Carmen will recognize on the sale is

• A)$2,000 gain.
• B)$1,000 gain.
• C)$1,000 loss.
• D)none of the above

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Definitions:

Demand Pull Inflation

An economic situation where prices rise because the demand for goods exceeds supply.

Aggregate Supply Curve

A visual depiction illustrating the aggregate amount of products and services that suppliers in an economy are prepared and capable of offering across various price points.

Keynes

Concerns John Maynard Keynes, a British economic theorist whose concepts transformed the study and application of macroeconomics as well as state economic policy.

Investment Expenditures

Spending by businesses or individuals on capital assets that are expected to yield benefits or profits over the long term.