Bob received 800 shares of Denver Corporation stock from his uncle as a gift on July 20, 2022, when the stock had a $196,000 fair market value (FMV). His uncle paid $100,000 for the stock on April The taxable gift was $196,000, because his uncle made another gift to Bob for $40,000 in January and used the annual exclusion. The uncle paid a gift tax of $39,200. Without considering the transactions below, Bob's ÀGI is $30,000 in 2023. No other transactions involving capital assets occur during the year. Read the requirement a. He sells the stock on October 12, 2023, for $200,000. b. He sells the stock on October 12, 2023, for $118,000. c. He sells the stock on December 16, 2023, for $195,000. AGI prior to sale of stock 200000 118000 195000 + + + Gain (loss) on sale of stock 139200 = = = AGI 339200

Bob received 800 shares of Denver Corporation stock from his uncle as a gift on July 20, 2022, when the stock had a $196,000 fair market value (FMV). His uncle paid $100,000 for the stock on April The taxable gift was $196,000, because his uncle made another gift to Bob for $40,000 in January and used the annual exclusion. The uncle paid a gift tax of $39,200. Without considering the transactions below, Bob's ÀGI is $30,000 in 2023. No other transactions involving capital assets occur during the year. Read the requirement a. He sells the stock on October 12, 2023, for $200,000. b. He sells the stock on October 12, 2023, for $118,000. c. He sells the stock on December 16, 2023, for $195,000. AGI prior to sale of stock 200000 118000 195000 + + + Gain (loss) on sale of stock 139200 = = = AGI 339200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Bob received 800 shares of Denver Corporation stock from his uncle as a gift on July 20, 2022, when the stock had a $196,000 fair market value (FMV). His uncle paid $100,000 for the stock on April 12, 2006.
The taxable gift was $196,000, because his uncle made another gift to Bob for $40,000 in January and used the annual exclusion. The uncle paid a gift tax of $39,200. Without considering the
transactions below, Bob's ÀGI is $30,000 in 2023. No other transactions involving capital assets occur during the year.
Read the requirement
a. He sells the stock on October 12, 2023, for $200,000.
b. He sells the stock on October 12, 2023, for $118,000.
He sells the stock on December 16, 2023, for $195,000.
C.
AGI prior to
sale of stock
200000
118000
195000
+
+
+
+
www
Gain (loss) on
sale of stock
139200
AGI
= 339200
=
=

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