Problem 5

# Problem 5 - 2 Myrna buys stock for \$4,000 and gives it to...

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Problem Set #5 1. Chris inherits stock when his Uncle Boris dies. Boris had paid \$40,000 for the stock back in 1998, and it was worth \$75,000 at his death on 4/18/2009. It was worth \$68,000 on 10/18/2009. It was worth \$69,000 when it was distributed by the estate to Chris. (a) If the alternate valuation election is not made, what's Chris's basis? (b) If the election is made, what's Chris's basis if it's distributed on 7/15/2009? (c) If the election is made, what's Chris's basis if it's distributed on 12/4/2009?
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Unformatted text preview: 2. Myrna buys stock for \$4,000 and gives it to her friend Maddy as a gift when it's worth \$7,500. How much gain or loss will Maddy have if she sells it for \$3,000? for \$9,000? for \$6,000? (Note: this is not "loss" property.) 3. Alice buys stock for \$9,000 and gives it to her friend Millie as a gift when it's worth \$7,500. How much gain or loss will Millie have if she sells it for \$6,000? for \$10,000? for \$8,500? (Note: this is "loss" property.)...
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