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

---

Definitions:

Embarrassing

A feeling of self-consciousness, shame, or awkwardness experienced in certain social situations.

Modesty

The quality of being humble or reserved in manner, dress, or speech, often out of a sense of decency.

Osteoarthritis

A degenerative joint disease characterized by the breakdown of cartilage and underlying bone, causing pain and stiffness, primarily in the elderly.

Low Back Pain

Discomfort located primarily in the lower area of the back, which can result from various factors including muscle strain, spine alignment issues, or underlying conditions.