Question

eBook Calculator Roberto has received various gifts over the years. He has decided to dispose of the following assets he received as gifts in the transactions indicated below. Determine the recognized gain or loss from the following transactions, assuming that no gift tax was paid when the gifts were made? All sales occurred in the current year. If an answer is zero, select "neither a gain nor a loss" and enter"0" as the amount. a. In 1981, he received land worth $48,960. The donor's adjusted basis was $55,080. Roberto sells the land for $122,400. of $ is recognized b. In 1986, he received stock in Gold Company. The donor's adjusted basis was $42,720. The fair market value on the date of the gift was $37,380. Roberto sells the stock for $53,400. of $ is recognized C. In 1992, he received land worth $22,500. The donor's adjusted basis was $30,000. Roberto sells the land for $13,500. is recognized of $ d. In 2013, he received stock worth $30,000. The donor's adjusted basis was $42,000. Roberto sells stock for $38,000. of $ is recognized

Answer 1

(a) Recognised gain= Sale price-donor's adjusted basis= 122400-55080= $67320

(b) Recognised gain= Sale price-donor's adjusted basis= 53400-42720= $10680

(c) Since the land was sold for a price less than the price originally purchased, donor'd adjusted basis would not be considered, Recognised loss= 13500-22500= $9000

(d) No gain or loss will be recognised as donor's adjusted basis was highest of purchase price and sale price