Gerry's grandmother bequeathed stock to Gerry at her death five years ago.  The grandmother paid $100 for the stock and it was valued at $5,000 when the grandmother died.  Gerry gave the stock to his daughter Emily two years ago.  The stock was valued at $4,000 at the date of transfer.  Emily sold the stock today for $4,500.  What is her gain or loss on the sale?  $0 Loss of $

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 6BCRQ
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Gerry's grandmother bequeathed stock to Gerry at her death five years ago.  The grandmother paid $100 for the stock and it was valued at $5,000 when the grandmother died.  Gerry gave the stock to his daughter Emily two years ago.  The stock was valued at $4,000 at the date of transfer.  Emily sold the stock today for $4,500.  What is her gain or loss on the sale? 

$0

Loss of $500

Gain of $500

Gain of $4,400

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