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Taxpayer receives stock as a gift from his uncle. The adjusted basis of the stock is $20,000 and the fair market value is $37,000. Taxpayer trades the stock for bonds with a fair market value of $35,000 and $2,000 cash. What is his recognized gain and the basis for the bonds?

a. $2,000, $22,000.

b. $0, $20,000.

c. $2,000, $20,000.

d. $17,000, $35,000.

e. None of the above.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9438838

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