Melvin receives stock as a gift from his uncle.No gift tax is paid.The adjusted basis of the stock is $19,000 and the fair market value is $25,000.Melvin trades the stock for bonds with a fair market value of $22,000 and $3,000 cash.What is his recognized gain and the basis for the bonds?
A) $0,$16,000.
B) $0,$19,000.
C) $3,000,$19,000.
D) $6,000,$22,000.
E) None of the above.
Correct Answer:
Verified
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