On February 12, 2015, Nelson Sells Stock (Basis $175,000) to His

Essay

On February 12, 2015, Nelson sells stock (basis $175,000) to his son Wayne for $150,000, the stock's fair market value on the date of the sale. On October 21, 2015, Wayne sells the stock to an unrelated party. In each of the following independent cases, determine the tax consequences of the transactions to Nelson and Wayne.
a. Wayne sells the stock for $140,000.
b. Wayne sells the stock for $180,000.
c. Wayne sells the stock for $165,000.