Troy received a gift of 100 shares of stock from his grandmother on July 1 of the current year. Troy's grandmother had owned the stock for 15 years and had a basis of $14 per share. On July 1, the date of the gift, the stock was selling for $39 per share. What is Troy's basis in the stock?

Question

Madison Green

Mathematics

12 March, 15:29

Troy received a gift of 100 shares of stock from his grandmother on July 1 of the current year. Troy's grandmother had owned the stock for 15 years and had a basis of $14 per share. On July 1, the date of the gift, the stock was selling for $39 per share. What is Troy's basis in the stock?

+2

Answers (1)

Know the Answer?

Killian Mcneil · Answer 1

Troy has a basis of $39 per share

total value of shares is $3900

Step-by-step explanation:

On July 1, the date of the gift, the stock was selling for $39 per share.

Troy's basis in the stock = current value of shares

No need to consider the base rate which is in 15 years ago

The current rate of 100 shares = $39 * 100 = $3900

Troy has a basis of $39 per share

total value of shares is $3900