On May 6 of the current year, S gifted 10 shares of publicly traded common stock to G.On that date, the highest selling price of the stock was $60 per share, the lowest selling price was $58 per share, and the closing price was $59.50 per share.What is the value of the 10 shares for gift tax purposes?

Question

Quizplus · Accepted Answer

For gift tax purposes, the value of gifted stock is determined by taking the average of the highest and lowest selling prices on the date of the gift. In this case, the average is calculated as ($60 + $58) / 2 = $59 per share. Therefore, for 10 shares, the value is $59 * 10 = $590.

On May 6 of the Current Year, S Gifted 10