Stock owned by a brother is sold to his sister. The brother's adjusted basis of the stock is $22,000. He sells the stock for $19,000. The sister sells the stock to an unrelated party for $17,000. What is the gain recognized by the sister? a. Her basis is $17,000. The price she paid for it. She sold it for $19,000. She recognizes a gain of $2,000. b. Because of the situation, she only has a $1,000 recognized loss. c. She takes the brother's basis in the stock and recognizes the $1,000 gain. d. None of the answers provided are correct.
Stock owned by a brother is sold to his sister. The brother's adjusted basis of the stock is $22,000. He sells the stock for $19,000. The sister sells the stock to an unrelated party for $17,000. What is the gain recognized by the sister? a. Her basis is $17,000. The price she paid for it. She sold it for $19,000. She recognizes a gain of $2,000. b. Because of the situation, she only has a $1,000 recognized loss. c. She takes the brother's basis in the stock and recognizes the $1,000 gain. d. None of the answers provided are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Stock owned by a brother is sold to his sister. The brother's adjusted
basis of the stock is $22,000. He sells the stock for $19,000. The sister
sells the stock to an unrelated party for $17,000. What is the gain
recognized by the sister?
a. Her basis is $17,000. The price she paid for it. She sold it for
$19,000. She recognizes a gain of $2,000.
b. Because of the situation, she only has a $1,000 recognized loss.
c. She takes the brother's basis in the stock and recognizes the $1,000
gain.
d. None of the answers provided are correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fece27ee1-26be-4b6d-a051-8f3fca0894b7%2F3f384fd6-608c-4100-b880-1ff7ab1a1474%2Fv0jkdi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Stock owned by a brother is sold to his sister. The brother's adjusted
basis of the stock is $22,000. He sells the stock for $19,000. The sister
sells the stock to an unrelated party for $17,000. What is the gain
recognized by the sister?
a. Her basis is $17,000. The price she paid for it. She sold it for
$19,000. She recognizes a gain of $2,000.
b. Because of the situation, she only has a $1,000 recognized loss.
c. She takes the brother's basis in the stock and recognizes the $1,000
gain.
d. None of the answers provided are correct.
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