Janet received stock worth $4,000 at the time it was gifted to her by her father. He had acquired the stock several years earlier for $2,200. He paid no gift tax on the transfer to Janet. Janet sells the stock for $6,600 two months after receiving it. What are the nature and amount of Janet’s gain or loss?
What will be an ideal response?
Since the stock was worth more than her father paid for it when he gifted it to Janet, the basis for gain is the father’s $2,200 basis. Also, the father’s holding period tacks to Janet’s holding period. Consequently, Janet has a $4,400 ($6,600 selling price - $2,200 basis) long-term capital gain from disposition of the stock.
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If the sum of the debits and credits in a trial balance is not equal, then
a. there is no concern because the two amounts are not meant to be equal. b. the chart of accounts also does not balance. c. it is safe to proceed with the preparation of financial statements. d. most likely an error was made in posting journal entries to the general ledger or in preparing the trial balance.
In general, periods in which the Taylor rule suggested tighter monetary policy than the Fed actually put in place are periods of rising inflation. Periods in which the Taylor rule suggested that monetary policy should be easier than the Fed actually put in place are periods of declining inflation. Describe a recent exception to these results.
What will be an ideal response?
The proportion of foreign or foreign-born workers grew in European countries that are primary destinations for people from neighboring countries in _____________.
a. Asia b. Eastern Europe c. United Nations d. Northern Ireland
Francenie was digging a trench to install a drainage pipe along her property line and she accidentally tunneled under a small area on her neighbor's property. The entry onto the neighbor's property:
a. cannot be a trespass because it was beneath the surface of the land. b. is not a trespass unless there was some actual damage to the neighbor's land. c. is a trespass. d. is not a trespass because Francenie was under the reasonable belief that she owned all of the land on which she was digging.