Ida Sells Some Stock to Mae for $20,000 at a Time

question 7

Essay

Ida sells some stock to Mae for $20,000 at a time when the stock is valued at $50,000.Later in the year,she gives Mae $15,000 in cash.
a)What is the amount of Ida's taxable gifts?
b)How would your answer to Part (a)change if Ida gave the cash to Jonathan instead of to Mae?

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Definitions:

Nonobstante Veredicto

A legal judgment that overturns the verdict of a jury, also known as "judgment notwithstanding the verdict."

Substantial Evidence Test

A standard used in legal settings to determine if the evidence in support of a conclusion is adequate and meaningful.

Arbitrary and Capricious Test

A standard of review used by courts to assess the decision-making process of an administrative agency, ensuring decisions were made logically and not randomly.

De Novo Review

A new; over again; a second time. A trial de novo, for example, is a new trial in which the entire case is retried.