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

Mathematics

Ezequiel Powell

9 June, 08:56

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?

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Answers (1)

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Jacob Baldwin · 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