Q 75

Josephine gave her son,Shane 700 shares of Creative Marketing Inc. ,common stock on May 26,2016.Josephine originally paid $9,000 for the stock on April 15,2016.At the date of the gift,the fair market value of the stock was $8,500.If no gift tax is paid and Shane sells the stock for $5,500 on May 26,2017,he will recognize: A)a short-term capital loss. B)a long-term capital loss. C)an ordinary loss. D)no loss because Josephine already recognized the loss when she gave the stock to Shane.

Multiple Choice