Donald Sells Stock with an Adjusted Basis of $38,000 to His

question 33

Multiple Choice

Donald sells stock with an adjusted basis of $38,000 to his son,Kiefer,for its fair market value of $30,000.Kiefer sells the stock three years later for $32,000.Kiefer will recognize a gain on the subsequent sale of

• A)$0.
• B)$2,000.
• C)($6,000).
• D)($8,000).

---

Definitions:

Splenic Artery

The blood vessel that supplies oxygenated blood to the spleen, branching from the abdominal aorta.

Pancreas

An organ in the abdomen involved in the digestion process and blood sugar regulation, producing digestive enzymes and insulin.

Distributing Arteries

Arteries that branch from larger arteries to distribute blood to various parts of the body.

Muscular Arteries

Arteries that deliver blood from the heart to specific organs, characterized by a thick tunica media with smooth muscle for regulating blood flow.