easy · Certified Financial Planner Professional Conduct

A client in the Marlowe household gifts 1,000 shares of stock to a niece. On the date of the gift, the Fair Market Value (FMV) is 80,000 and the donor's original basis is100,000.

If the niece later sells the shares for $90,000, what is the recognized gain or loss?

  1. 10,000 gain
  2. 10,000 loss
  3. 0
  4. 20,000 loss

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