Terry owns Lakeside, Inc.stock (adjusted basis of $80,000), which she sells to her brother, Jake, for $64,000 (its fair market value).Eighteen months later, Jake sells the stock to Pamela, a friend, for $78,000 (its fair market value).What is Terry's recognized loss, Jake's recognized gain or loss, and Pamela's adjusted basis for the stock?

\quad

\begin{array}{llcc}\underline{\text { Terry'sRecognizedLoss }}& \underline{\text { Jake'sRecognizedGain(Loss) }} &\underline{\text { Pamela'sBasis }}\\\end{array}

\begin{array}{llcc} \quad\quad\quad\quad\$-0-&\quad\quad\quad\quad\quad\quad\quad\quad\$-0-&\quad\quad\quad\quad\quad\quad\quad\quad\$78,000\end{array}

\begin{array}{llcc}\quad \quad\quad\quad\$-0-&\quad\quad\quad\quad\quad\quad\quad\quad \$ 14.000 &\quad\quad\quad\quad\quad\quad\quad\quad \$ 64.000\end{array}

\begin{array}{llcc} \quad \quad \quad \quad \$-0-&\quad \quad \quad \quad \quad \quad \quad \quad \$ 14,000& \quad\quad \quad \quad \quad \quad \quad \quad \$ 78,000\end{array}

\begin{array}{llcc} \quad \quad \quad \quad \$16,000&\quad \quad \quad \quad \quad \quad \quad \quad \$ 14,000& \quad\quad \quad \quad \quad \quad \quad \quad \$ 78,000\end{array}

\text { None of these. }

Annette Purchased Stock on March 1, 2019, for $200,000

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Correct Answer:VerifiedAnnette's realized gain or loss is zero ...View AnswerUnlock this answer nowGet Access to more Verified Answers free of chargeView Full Answer For Free

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