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NEW QUESTION: 1
Gibson purchased stock with a fair market value of $14,000 from Gibson's adult child for $12,000. The
child's cost basis in the stock at the date of sale was $16,000. Gibson sold the same stock to an unrelated
party for $18,000. What is Gibson's recognized gain from the sale?
A. $2,000
B. $4,000
C. $0
D. $6,000
Answer: A
Explanation:
Explanation
Choice "b" is correct. Losses are disallowed on most related party sales transactions even if they were
made at an arm's length (FMV) price. The basis (and related gain or loss) of the (second) buying relative
depends on whether the second relative's resale price is higher, lower, or between the first relative's basis
and the lower selling price to the second relative. In this case, the $4,000 capital loss on the sale by
Gibson's adult child to Gibson [$12,000 SP - $16,000 Basis] is disallowed. Gibson's basis is determined
by his selling price to a third party. In this case, the selling price is $18,000, which is HIGHER than the
original basis of Gibson's adult child. Gibson's basis in the stock is, therefore, his adult child's basis of
$ 16,000. Gibson's recognized basis is calculated as follows:

Choice "a" is incorrect. There would be a zero gain or loss if the selling price were between the adult
child's basis and Gibson's purchase price, but this is not the case in the facts.
Choice "c" is incorrect. This answer option uses the fair market value of the stock at the date of purchase
as the basis. As is discussed above, the rules do not provide for this treatment. [$18,000 SP - $14,000
FMV = $4,000]
Choice "d" is incorrect. This would be the answer if the basis were Gibson's purchase price of $12,000;
however, because the stock sold for more than Gibson's child's basis and the child had a disallowed loss
on the sale to Gibson, Gibson is allowed to use his child's original basis of $16,000 as his basis for the
stock on the date of the second sale. [$18,000 SP - $12,000 PP = $6,000]

NEW QUESTION: 2
Brocadeスイッチのファームウェアをアップグレードする方法は何ですか？
A. USB、FTP、そしてWebツール
B. USB、SFTP、およびWebツール
C. FTP、SFTP、そしてWebツール
D. USB、FTP、およびSFTP
Answer: A

NEW QUESTION: 3

A. Option A
B. Option C
C. Option B
D. Option D
Answer: B

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