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1. Courtney Kroon is planning to sell stock (basis of $184,000) to her son, Caleb,...

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Accounting

1. Courtney Kroon is planning to sell stock (basis of $184,000) to her son, Caleb, for $160,000, the fair market value.
A.What are the tax consequences to Courtney (does she have a realized and recognized gain or loss)?
B.What are the tax consequences (realized and recognized gain or loss amounts) to Caleb if he later sells the stock for:
i. $190,000?
ii.$152,000?
iii. $174,000?
2.Create a memo for the tax file where you document the meeting, and the consequences of the above transactions.
3.Write a letter to Courtney in which you inform her of the tax consequences if she sells the stock to Caleb for $160,000. Explain how a sales transaction could be structured that would produce better tax consequences for her. Courtneys address is 7200 Randy Lane, Dallas, TX 75001.

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