Gifted Property
Response to the following problem:
Darren gave stock worth $27,000 to his son. Darren paid $9,000 for the stock back in 1954. The full $27,000 value was subject to gift tax, and Darren paid $5,000 of gift tax on the transfer. In 2014, the son sold the stock for $42,000
a. Compute the son's recognized gain or loss assuming that the gift took place in 1970.
b. Same as in Part a. except that the gift took place in 1985.