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turner639237
27.09.2019 •
Business
Paula transfers stock to her former spouse, fred. the transfer is pursuant to a divorce agreement. paula's cost of the stock was $75,000 and its fair market value on the date of the transfer is $95,000. fred later sells the stock for $100,000. fred's recognized gain from the sale of the stock is $5,000. true or false?
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Ответ:
False
Explanation:
Given:
Paula's cost of the stock = $75,000
Fair market value on the date of the transfer = $95,000
Selling cost of the stocks = $100,000
Now,
The gain recognized = Selling cost of the stocks - Paula's cost of the stock
or
The gain recognized = $100,000 - $75,000 = $25,000
for calculating the gain the cost at the time of buying will be considered not the market value at the time of transfer.
Hence,
the recognized gain of $5,000 is false.
The recognized gain is $25,000
Ответ: