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

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Definitions:

Displacement

The transfer of emotions about one person or situation to another person or situation.

Repression

To force painful ideas or impulses into the subconscious.

Intellectualization

To employ reasoning to avoid confrontations or stressful situations.

Physical Boundaries

The demarcation of personal space and physical limits respected between individuals to ensure privacy and comfort.