In 2008,Savannah Purchased 200 Shares of Hi-Style Stock as an Investment.The

question 67

Multiple Choice

In 2008,Savannah purchased 200 shares of Hi-Style stock as an investment.The stock cost $17,000.In 2017 when the fair market value was $19,000,Savannah gave the stock to her daughter,Daniele.If no gift tax is paid and Daniele sells the stock for $20,000,she will recognize:

• A)no gain or loss.
• B)a $1,000 gain.
• C)a $2,000 gain.
• D)a $3,000 gain.

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Definitions:

Reaction

A process in which substances (reactants) interact to form new substances (products) with different chemical and physical properties.

Cross-Linking

The process of connecting or binding two or more polymer chains together through covalent, ionic, or hydrogen bonds, which affects the physical properties of the material.

Structural Isomers

Molecules that share the same molecular formula but have different arrangements of the atoms within the molecule.

Diastereomers

Stereoisomers that are not mirror images of each other; compounds that have multiple stereocenters with at least one differing in configuration.