Sale of asset received as a giftbud received 200 shares of, Ask an Expert

Finance

Sale of Asset Received as a Gift:

Bud received 200 shares of Georgia Corporation stock from his uncle as a gift on July 20, 2010, when the stock had a $45,000 FMV. The uncle paid $30,00 for the stock on April 12, 2000. The taxable gift was $45,000, because his uncle made another gift to Bud for $20,000 in January. The uncle paid gift tax of $1,500.

Without considering the transaction below, Buds AGI is $45,000 in 2011. No other transactions involving capital assets occur during the year. Analyze each transaction below, independent of the others, and determine Bud's AGI in each case

a. He sells the stock on October 12, 2011 for $48,000.
b. He sells the stock on October 12, 2011 for $28,000
c. He sells the stock on December 16, 2011 for $42,000

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9865689

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Your cousin is currentlynbsp10nbspyears old she will be

Your cousin is currently 10 years old. She will be going to college in 8 years. Your aunt and uncle would like to have $90,000 in a savings account to fund her education at that time. If the account promises to pay a fix ...

What is the price of a 1000 par value bond with an 8 coupon

What is the price of a $1,000 par value bond with an 8% coupon rate paid semiannually, if the bond is priced to yield 4% and it has 15 years to maturity?

If you buy a bond for a discount is your yield-to-maturity

If you buy a bond for a discount, is your yield-to-maturity higher, lower or the same as the going market interest rates?

Question - a stock is expected to pay a dividend of 075 at

Question - A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?

Flyby corp purchased 200 shares of stock at a price of 6130

FLYBY Corp. purchased 200 shares of stock at a price of $61.30 a share and sold them for $73.25 a share. FLYBY also received $192 in dividends. The inflation rate for the period was 4.7 percent. What was the approximate ...

Please explain how to find the answer using a financial

Please explain how to find the answer using a financial calculator! Purchase price equals 93,500. Six-year loan with no money down and no monthly payments during the first year. After the first year, payment of $1300 per ...

The statement of retained earnings for redwood systems ltd

The statement of retained earnings for Redwood Systems Ltd. shows a retained earnings balance of $300 million on December 31. During the year, Redwood generated net income of $60 million and paid dividends of $20 million ...

An executor may value assets as of the date of death or the

An executor may value assets as of the date of death or the alternate valuation date 6 months after death. Assuming the estate is eligible to elect, and the executor elects, the alternate valuation date, which of the fol ...

What are some of the challenges of understanding new

What are some of the challenges of understanding new targets and building a brand abroad?

Giana has been dollar cost averaging into a mutual fund for

Giana has been dollar cost averaging into a mutual fund for the past 12 years. She started out with a lump sum of $12,000. At the end of every month she added the profit from her apartment building, which was $1,200 per ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert