Question;Addendum to Problem #2-2013 Text?Grove Case?The Grove?s had the following property transactions in 2011-they must be incorporated into the solution for the case study.1. On 11/22, the Grove?s sold a gun collection for $32,500. The gun collection was gifted to Robert by his father on 12/25/07 when it had a fair market value of $22,000. His father?s cost basis was $14,000 when it was acquired in 1997.2. On 11/9/11, the Grove?s sold 3,000 shares of Smith Pharmaceuticals for $5,000. The stock was purchased by them on 12/4/09 for $25,000. The investment was motivated by a rumor that a specialty drug was about to receive FDA approval. When the approval was not received, the Wheat?s decided to cut their losses.3. On 7/24/11, the Grove?s sold shares in POTUS, Inc. for $15,000. The stock was purchased from a family friend Barry Romney for $25,000 on 8/8/09. It was Section 1244 when Barry purchased the stock in 2007.4. In 2012, the Grove?s principal residence was damaged by fire. They were insured for 90% of the actual loss and they received the insurance settlement. Pertinent data with respect to the property is as follows:Cost basis $180,000Value before casualty 250,000Value after casualty 60,0005. Robert received a gift of income-producing property with an adjusted basis on 5/17/80 of $75,000 to the donor and fair market value of $69,000 on the date of gift-4/23/95. Gift tax of $7,000 was paid by the donor. He subsequently sold the property on 8/8/11 for $72,000.6. If there is a fact or facts from the case study (either from the textbook or this addendum) that it is not reflected in your deliverable- a well written and understandable statement MUST be attached to your solution explaining the reasons for the exclusion. In many cases this could be a calculation AND an explanation This is a requirement of the case study and failure to comply will result in a grade reduction.
Paper#39522 | Written in 18-Jul-2015Price : $27