(8 POINTS) Rowena gifted her son, Crowley, with various amounts of stock. All of
ID: 2518985 • Letter: #
Question
(8 POINTS) Rowena gifted her son, Crowley, with various amounts of stock. All of stock had been held for more than 1 year by Rowena. Information regarding the gift detailed below. Determine basis and capital gain or loss to Crowley if he later sel gifts at the given prices and time-frames. a) Stock A (held for longer than 1 year by Crowley): FMV: $25,000 Rowena's basis: $12,000 Sales price: $30,000 b) Stock B (held for less than 1 year by Crowley): FMV: $25,000 Rowena's basis: $12,000 Sales price: $30,000 c) Stock C (held for longer than 1 year by Crowley): FMV: $25,000 Rowena's basis: $32,000 Sales price: $24,000 d) Stock D (held for longer than 1 year by Crowley): FMV: $25,000 Rowena's basis: $32,000 Sales price: $27,000Explanation / Answer
rowena gifted her son some stocks which are held by her for more then one yera so those stockes are long term securities even her son crowley held them less then one year beacause of theose stocks are gifted by her mom
STOCK A
rowena basis 12000
sale price 30000
capital gain $18000
STOCK B
rowena basis 12000
sale price 30000
capital gain $18000
STOCK C
rowena basis 32000
FMV 25000
capital LOSS $(7000)
consider fmv or sale price hich is heigher
STOCK D
rowena basis 32000
sale price 27000
capital gain $5000
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