Taxpayer receives stock as a gift from his uncle. the adjusted basis of the stock is $10,000 and the fair market value is $17,000. taxpayer trades the stock for bonds with a fair market value of $15,000 and $2,000 cash. what are his recognized gain and the basis for the bonds?

$7,000 and $15,000

Explanation:

Data provided in the question

The adjusted basis of the stock is $10,000

The fair market value is $17,000

For tax payer, the fair market value of the stock = $15,000

And, for cash = $2,000

So, the recognized gain is

= Fair market value of the stock + cash - adjusted basis of the stock

= $15,000 + $2,000 - $10,000

= $7,000

And, the basis for the stock is

= $10,000 - $2,000 + $7,000

= $15,000

answer; dogs;