Sanford Gives Mitchell 100 Shares of Stock That Cost Sanford

question 27

Multiple Choice

Sanford gives Mitchell 100 shares of stock that cost Sanford $5,000 several years ago. On the date of the gift, the stock is valued at $3,000. Mitchell holds the stock until the value increases and sells it for $4,000. What is Mitchell's recognized gain or loss on the sale?

• A)No gain or (loss) is recognized
• B)$1,000 loss
• C)$1,000 gain
• D)$2,000 loss
• E)$4,000 gain

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