Lydia purchased a sapphire bracelet for $3,000 while vacationing in Hong Kong in 2006. Lydia gives the bracelet to her daughter Amy when she graduates from college in 2019. The bracelet is appraised at $8,000 on that date. In October 2019, Amy sells the bracelet for $9,000. How is Amy's holding period for the bracelet determined?
A. It depends on whether a gift tax was paid at the time of the gift.
B. It begins in 2006.
C. It begins in 2019.
D. It is irrelevant because the transfer was a gift, and gifts are always considered to be held long-term.
Answer: B
You might also like to view...
Culture is most likely converging toward individual autonomy and independence in the mass-market segment of an emerging market
Indicate whether the statement is true or false
An auditor should give equal emphasis to all management assertions when testing accounts
a. True b. False Indicate whether the statement is true or false
Outsourcing production or operating activities will help in improving the cash flow by reducing investment in physical assets
Indicate whether the statement is true or false
Which lot-sizing technique orders the quantity needed during a predetermined time between orders?
A) economic order quantity B) periodic order quantity C) lot-for-lot D) time fencing E) part-period balancing