11 May WHAT IS KARENS RECOGNIZED GAIN OR LOSS ON THE SALE OF THE STOCK, AND WHAT IS HER BASIS IN THE 30 SHARES PURCHASED 25 DAYS EARLIER?
Taylor inherited 100 acres of land on the death of
his father in 2010. A Federal estate tax return was filed and this land was
valued therein at $650,000, its fair market value at the date of the fathers
death. The father had originally acquired the land in 1965 for $112,000 and
prior to his death he had expended $20,000 on permanent improvements. Determine
Taylors holding period for the land.
A.
Will
begin with the date his father acquired the property.
B.
Will automatically be long-term.
C.
Will begin with the date of his fathers death.
D.
Will begin with the date the property is
distributed to him.
E.
None of the above.
95.
Kelly inherits land which had a basis to the
decedent of $95,000 and a fair market value of $50,000 on August 4, 2010, the
date of the decedents death. The executor distributes the land to Kelly on
November 12, 2010, at which time the fair market value is $49,000. The fair
market value on February 4, 2011, is $45,000. In filing the estate tax return,
the executor elects the alternate valuation date. Kelly sells the land on June
10, 2011, for $48,000. What is her recognized gain or loss?
A.
($1,000).
B.
($2,000).
C.
($47,000).
D.
$1,000.
E.
None of the above.
96.
Iva
owns Mauve, Inc. stock (adjusted basis of $40,000) which she sells to Joshua,
her brother, for its fair
market value of $32,000. Fifteen months later, he sells it to
Faye, a friend, for its fair market value of $39,000. Determine Ivas
recognized loss, Joshuas recognized gain or loss, and Fayes adjusted basis
for the stock.
Ivas recognized loss
Joshuas recognized gain or loss
Fayes
basis
A.
$
0
$
0
$39,000
B.
$
0
$
7,000
$32,000
C.
$
0
$
7,000
$39,000
D.
$
8,000
$
7,000
$39,000
E.
None of the above.
97.
Jay sells property with an adjusted basis of
$19,000 to his daughter for $12,000. Daughter subsequently sells the property
to her brother for $12,000. Two years later, brother sells the property to Hun,
an unrelated party, for $21,000. What is brothers recognized gain or loss on
the sale of the property?
A.
$0.
B.
$2,000.
C.
$4,000.
D.
($2,000).
E.
None of the above.
14
98.
Karen purchased 100 shares of Gold Corporation
stock for $11,500 on January 1, 2002. In the current tax year, she sells 25
shares of the 100 shares purchased on January 1, 2002, for $2,500. Twenty-five
days earlier, she had purchased 30 shares for $3,000. What is Karens
recognized gain or loss on the sale of the stock, and what is her basis in the
30 shares purchased 25 days earlier?
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