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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. $6,000
B. $4,000
C. $0
D. $2,000
Answer: D
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
Refer to the exhibit. Which statement about the Cisco WCS RRM event message is true?

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B. Excessive non-802.11 interference caused the channel change.
C. Two adjacent APs on the same channel caused a signal collision.
D. A CleanAir AP detected a persistence interferer and forced an RRM channel reassignment.
Answer: B

NEW QUESTION: 3
Sie müssen anderen Benutzern ermöglichen, Remotedesktopverbindungen zu Ihrem Computer herzustellen.
Welche Systemsteuerungsanwendung sollten Sie verwenden?
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C. System
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E. Telefon und Modem
F. Netzwerk- und Freigabecenter
G. Energieoptionen
H. Synchronisierungscenter
Answer: C

NEW QUESTION: 4
Scenario: A Citrix Administrator is investigating an instability in the system that is causing the Print Spooler service to stop frequently on the XenApp server. The administrator finds printer driver conflicts in the environment.
Which policy can the administrator use to resolve this issue and remove the unwanted printer drivers on the XenApp server?
A. Use universal printing only if requested driver is unavailable
B. Use only printer model specific drivers
C. Auto-connect all client printers
D. Automatic Installation of in-box printer drivers
Answer: A

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