simple math work.......................................

History
Tutor: None Selected Time limit: 1 Day

Sue receives stock as a gift from his uncle. The adjusted basis of the stock is $10,000 and the fair market value is $17,000. The taxpayer trades the stock for bonds with a fair market value of $15,000 and $2,000 cash. What is the taxpayer's recognized gain and the basis for the bonds?

Jul 24th, 2015

Thank you for the opportunity to help you with your question!

recorgnized gain=15000-10000

                           =5000 dollars

gain=17000-10000

            =7000 dollars

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 24th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Jul 24th, 2015
...
Jul 24th, 2015
Dec 9th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer