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  3. charlotte owes calvin $5,000. instead of repaying

Charlotte owes Calvin $5,000. Instead of repaying with dollars, Charlotte transfers stock with a fair...

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Accounting

  1. Charlotte owes Calvin $5,000. Instead of repaying with dollars, Charlotte transfers stock with a fair market value of $5,000 to Calvin in full satisfaction of the debt. Charlotte bought the stock three years ago for $3,500. What tax results for both parties?

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