1. Leticia sells stock with an adjusted basis of $42,000 to her son, Kanye, for its fair market value of $34,000. Kanye sells the stock two years later for $36,000. Kanye will recognize a gain on the subsequent sale of
A) $0.
B) $2,000.
C) ($6,000).
D) ($8,000).
2. Violet died on August 12, 2017, when she owned securities with a basis of $40,000 and a FMV of $55,000. Carlucci inherited the property and sold it on November 27, 2017 for $73,000. What is Carlucci's reported gain on this sale?
A) $15,000 STCG
B) $15,000 LTCG
C) $18,000 STCG
D) $18,000 LTCG
3. In 2017, Stan, who is single and age 38, received $70,000 of gross income and had $4,000 of deductions for AGI and $5,500 of itemized deductions. Sean's taxable income is
A) $55,000.
B) $55,600.
C) $57,500.
D) $66,000.