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;$180,000;Value before casualty;250,000;Value after casualty;60,000;5.;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#42959 | Written in 18-Jul-2015Price : $35