Tracy Gave Stock with an Adjusted Basis of $18,000 and an FMV

question 88

Multiple Choice

Tracy gave stock with an adjusted basis of $18,000 and an FMV of $15,000 to her nephew Phil. No gift tax was paid. Phil sold the stock for $16,000. The gain or loss Phil will recognize on the sale is

• A)$1,000 gain.
• B)$0.
• C)$1,500 loss.
• D)none of the above

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Definitions:

Anxiety-Provoking Situations

Circumstances or events that induce a state of anxiety or distress in an individual.

Externalizing Problems

A type of disruptive behaviour disorder under the DSM-IV classification exhibited by children who behave disruptively, cannot control their activity levels or impulses, or have difficulty concentrating. These behaviours are usually more disturbing to others than to the children themselves.

Over Controlled Behaviour

A behavior pattern characterized by excessive self-discipline, rigidity, and a reluctance to express emotions or relax.

Operant Conditioning

An idea developed by Burrhus F. Skinner (1904–1990), according to which it is the consequences of behaviour that are important. Some consequences encourage the repetition of the behaviour that produces them, while other consequences result in the opposite effect. See also classical conditioning.