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Daniel receives 400 shares of A\&M Corporation stock from his aunt on May 20, 2023,...

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Accounting

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Daniel receives 400 shares of A\&M Corporation stock from his aunt on May 20, 2023, as a gift when the stock has a $60,000 fair market value (FMV). His aunt purchased the stock in 2013 for $42,000. The taxable gift is $60,000 because she made earlier gifts to Daniel during 2023 and used the annual exclusion. She paid a gift tax of $9,300 on the gift of A\&M stock to Daniel. Daniel also inherited 300 shares of Longhorn Corporation preferred stock when his uncle died on November 12, 2022, when the stock's FMV was $30,000. His uncle purchased the stock in 2001 for $27,600. a. Determine the gain or loss on the sale of A\&M and Longhorn stock on December 15, 2023 if A\&M stock was sold for $62,600, and Longhorn stock was sold for $30,750. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Use a minus sign or parentheses to enter a loss. Enter a "0" if there is no gain or loss.)

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