Sandra sold 500 shares of Wren Corporation to Bob, her brother, for its fair market value. She had paid $26,000 for the stock. Calculate Sandra's and Bob's gain or loss under the following circumstances:
a. Sandra sold the shares to Bob for $20,000. One year later, Bob sold them for $18,000.

b. Sandra sold the shares to Bob for $30,000. One year later, Bob sold them for $27,000.

c. Sandra sold the shares to Bob for $20,000. One year later, Bob sold them for $28,000.

Question

Sandra sold 500 shares of Wren Corporation to Bob, her brother, for its fair market value. She had paid $26,000 for the stock. Calculate Sandra's and Bob's gain or loss under the following circumstances:
a. Sandra sold the shares to Bob for $20,000. One year later, Bob sold them for $18,000.

b. Sandra sold the shares to Bob for $30,000. One year later, Bob sold them for $27,000.

c. Sandra sold the shares to Bob for $20,000. One year later, Bob sold them for $28,000.

Quizplus · Accepted Answer

The Answer of Sandra sold 500 shares of Wren Corporation to Bob, her brother, for its fair market value. She had paid $26,000 for the stock. Calculate Sandra's and Bob's gain or loss under the following circumstances:
a. Sandra sold the shares to Bob for $20,000. One year later, Bob sold them for $18,000.

b. Sandra sold the shares to Bob for $30,000. One year later, Bob sold them for $27,000.

c. Sandra sold the shares to Bob for $20,000. One year later, Bob sold them for $28,000.

Sandra Sold 500 Shares of Wren Corporation to Bob, Her