PLease help me out in the last part which is C I dont need b

PLease help me out in the last part which is C, I don\'t need both A and B becasue I done with them. Show me how to get the answer for this one qestion only part C

David receives 1,000 shares of Along Corporation stock from his aunt on May 20, 2017, as a gift when the stock has a $220,000 FMV. His aunt purchased the stock in 2007 for $80,000. The taxable gift is $220,000 because she made earlier gifts to David during 2017 and used the annual exclusion. She paid a gift tax of S34,100 on the gift of Along stock to David. David also inherited 500 shares of T-Bone Corporation preferred stock when his uncle died orn November 12, 2016, when the stocks FMV was $60,000. His uncle purchased the stock in 1995 for $42,500. Read the requirements a. Determine the gain or loss on the sale of Along and T-Bone stock on December 15, 2017 if Along stock was sold for $222 200, and T- Bone stock was sold for $62,500. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Use a minus sign or parentheses to enter a loss. Enter a if there is no gain or loss.) Scenario a. Investment Gain (loss) Along T-Bone 20,500 2,500 b. Determine the gain or loss on the sale of Along and T-Bone stock on December 15,2017 if Along stock was sold for $218,000, and T-Bone stock was sold for $43,500. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Use a minus sign or parentheses to enter a loss. Enter a if there is no gain or loss.) Scenario b. Investment Gain (loss) Along T-Bone 16,300 16,500) Enter any number in the edit fields and then click Check Answer.

Solution

Ans for sub question Number c).

Explanation:-

1. Along Corporation :-

In case of investment in Along Corporation, there is neither gain nor loss because, the fair market value of the shares invested in along corporation was less than the donor\'s base as on the date of the presentation of the gift. Therefore there will be no gift tax added to the donee\'s basis in the stock.

Fair Market Value at the time of the gift is mostly used to determine the loss.

Fair Market Value in case of donors base is mostly to determine the gain.

2. T-Bone:-

Computation of gain or loss on sale of T-Bone is as follows:-

$62500 - $60,000 = $2,500 which is long term capital gain

Investments	Gain (Loss)
Along	$0 (No gain or loss)
T-Bone	$ 2,500 (Long Term Capital Gain)