January Study Question of the Month

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Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card.

Question

Relevant to the Series 7.

 

 

 

 

 

Cassie gives her nephew Frank 10 shares of Hathshire Berkaway as a college graduation present. Cassie purchased the shares five years ago at $1,000, and their fair market value is $1,500 at the time of the gift. Frank holds the shares for one year, then sells them at $2,000. What is Frank’s cost basis and holding period?
 
A. $10,000; one year
B. $10,000; six years
C. $15,000; one year
D. $15,000; six years

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