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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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