4. John buys shares of stock in Acme Corp. on January 1, 2018 for $50.John dies July 1, 2018 when the stock has a fmv of $60. Maryinherits the stock from John’s estate. Mary sells thestock on September 1, 2018 for $80.
a. What is the gain /loss recognized by John’sestate? ______________
What is the character of the gain/loss? _____________
b. What is the gain /loss recognized byMary? ______________
What is the character of the gain/loss? _____________
5. Same facts as in Question 4 except the value of the shares is $40on John’s date of death.
a. What is the gain /loss recognized by John’sestate? ______________
What is the character of the gain/loss? _____________
b. What is the gain /loss recognized byMary? ______________
What is the character of the gain/loss? _____________
6. Same facts as in Question 4 except Mary sells the stock for$30.
a. What is the gain /loss recognized by John’sestate? ______________
What is the character of the gain/loss? _____________
b. What is gain /loss recognized byMary? ______________
What is the character of the gain/loss? _____________
7. Same facts as in Question 4 except Mary Sells the stock on May 1,2019.
a. What is the gain /loss recognized by John’sestate? ______________
What is the character of the gain/loss? _____________
b. What is the gain /loss recognized byMary? ______________
What is the character of the gain/loss? _____________
