Sonya inherits shares of Big Red Airline Corporation stock from the estate of her Uncle...
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Accounting
Sonya inherits shares of Big Red Airline Corporation stock from the estate of her Uncle Tony. Tony purchased the stock for $3,000 on August 2, 2020. Tony died on August 4, 2020. The stock's fair market value on August 4, 2020, is $2,000. Sonya sells the shares for $2,300 on December 8, 2020. What are the tax consequences for Sonya?
Group of answer choices
Sonya has short-term loss of ($700).
Sonya has a short-term gain of $300.
Sonya has a long-term loss of ($700).
Sonya has a long-term gain of $300.
Adam owns land that he purchased for $30,000 in 2015. After using it personally for two years, he converts the land to business use when the land's fair market value is $15,000. He then, sells the land for $42,000 the next year. What is Adams recognized gain or loss on the sale?
Group of answer choices
No gain no loss.
$12,000 gain.
$27,000 gain.
$32,000 gain.
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