Sale of Assets Received as a Gift and Inherited Daniel receives 400 shares of A&M stock from his aunt on May 20, 2019, as a gift when the stock has a $60,000 FMV. His aunt purchased the stock in 2009 for $42,000. The taxable gift is $60,000 because she made earlier gifts to Daniel during 2019 and used the annual exclusion. She paid a gift tax of $9,300 on the gift of A&M stock to Daniel. Daniel also inherited 300 shares of Longhorn preferred stock when his uncle did on November 12, 2018, when the stock’s FMV was $30,000. His uncle pur-chased the stock in 1997 for $27,600. Determine the gain or loss on the sale of A&M and Longhorn stock on December 15, 2019, under each alternative situation below.
a. A&M stock was sold for $62,600, and Longhorn stock was sold for $30,750.
b. A&M stock was sold for $58,200, and Longhorn stock was sold for $28,650.
c. Assume the same as in Part a except his aunt purchased A&M stock for $71,000 and his uncle purchased Longhorn stock for $31,200.
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