In January of the current year, Dora made a gift of stock to her granddaughter. At the time of the gift, the stock was worth $15,000. Several months later in the same year after the gift, a $500 dividend was declared on the stock and paid to Dora's granddaughter. What amount must Dora's granddaughter include in her gross income for the current year?

Question

Quizplus · Accepted Answer

Dividends received by the granddaughter from the gifted stock are considered income to her. The value of the stock at the time of the gift is not included in her gross income, only the dividends received. Since none of the choices accurately reflect just the dividend amount ($500), the correct answer is that none of the choices are correct.

In January of the Current Year, Dora Made a Gift