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11 John gifted securities to his son. The securities have a fair market value of...

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Accounting

11 John gifted securities to his son. The securities have a fair market value of $50,000 and an adjusted cost base of $20,000. Which of the following correctly describes the income tax consequences for both John and his son on this transfer? John will report a taxable capital gain equal to $50,000 on the disposition of securities. John's son will hold the securities with an adjusted cost base of $0. O John will report a capital gain equal to $30,000 on the disposition of securities. John's son will hold the securities with an adjusted cost base of $20,000 John will report a taxable capital gain equal to $30,000 on the disposition of securities. John's son will hold the securities with an adjusted cost base of $30,000 O John will report a taxable capital gain equal to $15,000 on the disposition of securities. John's son will hold the securities with an adjusted cost base of $50,000

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