CPA Practice Test 3

10 free CPA practice questions in the real exam format, covering the official content areas, with an explanation for every answer.

CPA Practice Test 3Tutor mode

Question 1 of 10

Federal Taxation of Property Transactions

Wesley Grant, an individual, received stock as a gift from his aunt. The aunt's adjusted basis was $40,000, the stock's fair market value on the date of the gift was $30,000, and no gift tax was paid. Wesley later sold the stock for $34,000. What gain or loss does Wesley recognize on the sale?