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Ralph gives his daughter, Angela, stock (basis of $8,000; fair market value of $6,000). No gift...

Ralph gives his daughter, Angela, stock (basis of $8,000; fair market value of $6,000). No gift tax results. If Angela subsequently sells the stock for $10,000, what is her recognized gain or loss?

Group of answer choices

None of the above

$0

$4,000

$10,000

$2,000

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Homework Answers

Answer #1

Recognized gain (Loss)

= Consideration received - Basis of the stock

= 10,000 - 8,000

= 2,000

Option D is the answer
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