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Zinaida [17]
4 years ago
6

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

tly sells the stock for $10,000, what is her recognized gain or loss?\
Business
1 answer:
spayn [35]4 years ago
8 0

Answer:

Her recognized gain is $2,000

Explanation:

Data provided in the question:

Stock basis = $8,000

Fair market value = $6,000

Sale value = $10,000

Now,

Ralph's daughter  recognized gain or loss will be

= Sale value  - Stock basis

or

Ralph's daughter  recognized gain or loss = $10,000 - $8,000

or

Ralph's daughter  recognized gain or loss = $2,000

Here,

the positive value means that there is a gain.

Hence,

Her recognized gain is $2,000

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A company manufactures a product that has a design (nominal) target width of 5 inches with tolerances of + .05 inch. The process
lisov135 [29]

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