Steve Gave Stock with an Adjusted Basis of $7,000 and an FMV

question 41

Multiple Choice

Steve gave stock with an adjusted basis of $7,000 and an FMV of $10,000 to Alice. No gift tax was paid. Later, Alice sold the stock for $12,000. The gain Alice will recognize on the sale is

• A)$5,000.
• B)$2,000.
• C)$0.
• D)none of the above

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Definitions:

Intelligence Tests

Standardized tests designed to measure human intelligence, cognitive functions, and mental capabilities.

Linguistic Determinism

The hypothesis that language determines the way we think and perceive the world around us.

Conceptual Distinctions

The differentiation between ideas or theories that allows for a clearer understanding and categorization of thoughts or phenomena.

Universal Grammar

A theory in linguistics proposing that the ability to acquire language is innate to humans and that all human languages share a common underlying structure.