Rachel purchased Blue Corporation stock for $10,000 in 2014. Rachel sells the stock to her sister, Erica, for $2,000 in 2018. In 2020, Erica sells the bonds for $25,000 to a non-relative. What is the amount of Erica’s taxable gain? Group of answer choices $0. $15,000. $23,000. $25,000.
Rachel purchased Blue Corporation stock for $10,000 in 2014. Rachel sells the stock to her sister, Erica, for $2,000 in 2018. In 2020, Erica sells the bonds for $25,000 to a non-relative. What is the amount of Erica’s taxable gain? Group of answer choices $0. $15,000. $23,000. $25,000.
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 42P
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Question
Rachel purchased Blue Corporation stock for $10,000 in 2014. Rachel sells the stock to her sister, Erica, for $2,000 in 2018. In 2020, Erica sells the bonds for $25,000 to a non-relative. What is the amount of Erica’s taxable gain?
Group of answer choices
$0.
$15,000.
$23,000.
$25,000.
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