Simmons gives her child a gift of publicly-traded stock with a basis of $40,000 and a fair market value of $30,000. no gift tax is paid. the child subsequently sells the stock for $36,000.
what is the child's recognized gain or loss, if any?

a. $4,000 loss.
b. no gain or loss.
c. $6,000 gain.
d. $36,000 gain.

Kyle and alyssa paid $1,000 and $4,000 in qualifying expenses for their two daughters jane and jill, respectively, to attend the university of california. jane is a sophomore and jill is a freshman. kyle and alyssa's agi is $135,000 and they file a joint return. what is their allowable american opportunity tax credit after the credit phase-out based on agi is taken into account?