Answer: $2000
Explanation:
From the question, we are informed that Ralph gives his daughter, Angela, stock (basis of $8,000; fair market value of $6,000) and that Angela subsequently sells the stock for $10,000.
The realized gain or loss will be calculated as:
Sale value of stock = $10,000
Basis of stock = $8000
Realized gain will then be:
= $10,000 - $8,000
= $2000
