1. John buys shares of stock in Acme Corp. on January 1, 2018 for $50.He gifts the stock to Mary on July 1, 2018 when the stock has afair market value (fmv) of $60. Mary sells the stock on September 1, 2018 for $80.
a. What is the gain /loss recognized byJohn? ______________
What is the character of the gain/loss? _____________
b. What is the gain /loss recognized by Mary? ______________
What is the character of the gain/loss? _____________
2. Same facts as in Question 1 except the value of the shares when thegift is made is $40.
a. What is the gain /loss recognized by John?______________
What is the character of the gain/loss? _____________
b. What is the gain /loss recognized by Mary? ______________
What is the character of the gain/loss? _____________
3. Same facts as in Question 1 except Mary Sells the stock on May 1,2019.
a. What is the gain /loss recognized by John? ______________
What is the character of the gain/loss? _____________
b. What is the gain /loss recognized byMary? ______________
What is the character of the gain/loss? _____________
