Exam 9: Acquisitions of Property

Dustin buys 200 shares of Monroe Corporation common stock on December 1,2012,for $2,000.He buys an additional 200 shares for $1,800 on December 23,2013.On December 28,2013,Dustin sells the first 200 shares for $1,700.He sells the last 200 for $1,600 on June 15,2014.What is (are)the amount(s)and the year of recognition of losses that Dustin can recognize? a.-0- \ 200 b.-0- \ 500 c.\ 300 \ 200 d.\ 300 \ 500

Randall is given five acres of land in 2001.At the time of the gift,the land had a fair market value of $182,000,and its adjusted basis to the donor was $160,000.What is Randall's gain if he sells the land for $184,000?

David pays $35,000 cash and issues a mortgage note for $95,000 to purchase land.He pays $750 to his attorney for reviewing the purchase agreement.David's initial basis in the land is

Samantha receives 100 shares of Burnet Corporation stock as a gift from her cousin.At the date of the gift the stock is valued at $60 per share.It cost her cousin $10 per share several years before.One month later,Samantha's uncle dies and she inherits 100 shares of Crockett Corporation stock from her uncle's estate.The stock cost her uncle $10 per share twenty-five years ago.On the date of death the stock has a value of $60 per share.Samantha needs money to invest in her business,but she does not need to sell both blocks of stock this year.Which stock would you recommend Samantha to sell?

Kevin buys one share of Mink,Inc.,common stock for $100.On February 3 of the current year,the corporation makes a nontaxable distribution of one share of preferred stock to all holders of record of common stock.On the distribution date,the common stock is trading at $250 and the preferred stock is trading at $50.After the distribution,Kevin's bases in the two shares of stock are: $\text { Common } \quad \text { Freferred }$ a. $\$ 50.00 \quad \$ 50.00$ b. $\$ 100.00 \quad \$ - 0 -$ c. $\$ 83.33 \quad \$ 16.67$ d. $\$ 250.00 \quad \$ 50.00$ e. $\$ 80.00 \quad \$ 20.00$

Mitaya purchased 500 shares of Sundown Inc.,common stock on December 13,2011,at a cost of $3,600.She paid a commission of $150 on the purchase.On February 18,2012,she received 250 shares of Sundown Inc.,common stock as a tax-free dividend.Mitaya sells 600 shares for $3,700 on January 8,2013,and pays a $100 commission on the sale.Mitaya's gain (loss)on the sale is characterized as: