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John purchased 300 shares of IBM at $27 per share on 7/1/17. Answer each question...

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Accounting

John purchased 300 shares of IBM at $27 per share on 7/1/17. Answer each question below ignoring any costs of purchase or sale (broker fees). EACH OF THE QUESTIONS IS INDEPENDENT so always begin your calculations with Johns original basis of $27 per share. Gains or losses are long-term if the holding period is greater than one year. Otherwise they are short-term.

John gifts the IBM stock to his son Jack on 3/1/18 when the stock is worth $20 per share. Jack sells it on 9/1/18 for $30 per share. What gain or loss will Jack recognize on the sale? Is it short term or long term?

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