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Two years ago, rhonda received a gift of 100 shares of common stock from her parents. the fair market value of the stock on the date of the gift was $80 per share. her parents had purchased the stock four years earlier at $60 per share. rhonda sold this stock for $102 per share last week. what was rhonda's per-share basis in the stock when it was sold

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anthougo

Rhonda's per-share basis in the stock when it was sold was $80 per share.

What is the tax basis of an asset?

Rhonda's per-share basis in the stock sold refers to her cost tax basis.   The tax basis of an asset is the amount of capital investment when computing for tax purposes.

The purchase or cost tax basis may be higher or less than the sale tax basis.

When the purchase tax basis is higher than the sale tax basis, it gives rise to a capital loss and vice versa.

Thus, Rhonda's per-share basis in the stock when it was sold was not $60 or $102 but $80 per share.

Learn more about tax bases at https://brainly.com/question/25899244

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