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antoniya [11.8K]
3 years ago
5

Jordan purchased 50 shares of Walsh Co. stock three years ago for $1,000. Jordan recently gifted the stock to her brother, Colin

. On the date of the gift, the stock had a fair market value of $750. Six months after receiving the stock from Jordan, Colin decides to sell the stock. Which of the following statements is correct? Question options: If Colin sells the stock for $700, he will have a long-term capital loss. If Colin sells the stock for $1,100, he will have a short-term capital gain If Colin sells the stock for $675, he will have a short-term capital loss. If Colin sells the stock for $800, he will have a long-term capital gain.
Business
1 answer:
rjkz [21]3 years ago
8 0

Answer:

If Colin sells the stock for $675, he will have a short-term capital loss.

Explanation:

The cost of acquisition for the transferee will be stated as the fair market value as on the date of the transfer. if the shares are further sold at $675, then he shall be liable for the short-term capital loss.

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