On July 25,2016,Marilyn Gives Stock with a FMV of $7,500

question 134

Multiple Choice

On July 25,2016,Marilyn gives stock with a FMV of $7,500 and a basis of $5,000 to her nephew Darryl.Marilyn had purchased the stock on March 18,2016.Darryl sold the stock on April 18,2017 for $7,800.As a result of the sale,what will Darryl report on his 2017 tax return?

• A)$300 STCG
• B)$300 LTCG
• C)$2,800 STCG
• D)$2,800 LTCG

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Definitions:

Prior Period Adjustments

Corrections of errors in financial statements of previous periods or adjustments for changes in accounting policies.

Net Losses

The amount by which a company's expenses exceed its revenues over a specific period, indicating a financial loss.