ACCT 553 STUDY Learn by Doing/acct553study.com ACCT 553 STUDY Learn by Doing/acct553study.com | Page 18

1. Please explain the distinction between a "realized" gain and a
"recognized" gain. (5 pts)
2. Are there any limits to the deductibility of losses on sales and
exchanges between related parties? What code section defines this
limitation? (5 pts.)
3. What is the basis of property received (i.e. new property) in a likekind exchange? What is the holding period for the new asset? (5 pts.)
4. David purchased stock in Zoll Corporation in 1985 for $6,000. On
April 16, 2013 he gifted the stock to his daughter Susan; at the time of
the gift, the Zoll stock was valued at $250,000. Susan sold the stock
the next month for $ 252,000. What is Susan's gain or loss and what
is the character of the gain or loss? ( 5 pts.)
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