In Addition to Other Gifts,Megan Made a Gift of Stock

question 78

Multiple Choice

In addition to other gifts,Megan made a gift of stock to Jeri in 1976.Megan had purchased the stock in 1974 for $7,500.At the time of the gift,the stock was worth $20,000.If Megan paid $850 of gift tax on the transaction in 1976,what is Jeri's gain basis for the stock?

• A)$7,500
• B)$8,350
• C)$9,017
• D)$20,000
• E)None of these

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