Nick received a gift of stock from his father.Nick's father had purchased the stock 2 years earlier and his father's basis in the stock was $30,000.On the date of the gift,the stock had a fair market value of
$25,000.
a.If Nick sells the stock for $23,000,calculate the amount of Nick's gain or loss on the transaction.
b.If Nick sells the stock for $32,000,calculate the amount of Nick's gain or loss on the transaction.
c.If Nick sells the stock for $27,000,calculate the amount of Nick's gain or loss on the transaction.

Question

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The Answer of Nick received a gift of stock from his father.Nick's father had purchased the stock 2 years earlier and his father's basis in the stock was $30,000.On the date of the gift,the stock had a fair market value of
$25,000.
a.If Nick sells the stock for $23,000,calculate the amount of Nick's gain or loss on the transaction.
b.If Nick sells the stock for $32,000,calculate the amount of Nick's gain or loss on the transaction.
c.If Nick sells the stock for $27,000,calculate the amount of Nick's gain or loss on the transaction.

Nick Received a Gift of Stock from His Father