Ms. Veronica Lox owns securities with an adjusted cost base of $150,000 and a fair market value of $175,000. She sells these securities to her father for $210,000. He immediately sells them to an arm's length party for $175,000. Determine the tax consequences for Ms. Lox and her father.

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The Answer of Ms. Veronica Lox owns securities with an adjusted cost base of $150,000 and a fair market value of $175,000. She sells these securities to her father for $210,000. He immediately sells them to an arm's length party for $175,000. Determine the tax consequences for Ms. Lox and her father.

Ms Veronica Lox Owns Securities with an Adjusted Cost Base