Steve gave stock with an adjusted basis of $7,000 and an FMV of $10,000 to Alice. No gift tax was paid. Later, Alice sold the stock for $12,000. The gain Alice will recognize on the sale is
A)$5,000.
B)$2,000.
C)$0.
D)none of the above

Question

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The Answer of Steve gave stock with an adjusted basis of $7,000 and an FMV of $10,000 to Alice. No gift tax was paid. Later, Alice sold the stock for $12,000. The gain Alice will recognize on the sale is
A)$5,000.
B)$2,000.
C)$0.
D)none of the above

Steve Gave Stock with an Adjusted Basis of $7,000 and an FMV