David Owns 600 Shares of K Corporation Stock When K

question 57

Multiple Choice

David owns 600 shares of K Corporation stock when K is merged into Parent Corporation.David receives 500 shares of Parent Corporation stock (fair market value = $10,500) and $500 cash in exchange for his K Corporation stock.David's K stock had a basis of $8,000 and an $11,000 fair market value.What is David's realized and recognized gain, respectively?

• A)$3,000 and $3,000
• B) $3,000 and $2,500
• C)$2,500 and $500
• D)$3,000 and $500

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Deposited

The act of placing money or another form of value into an account.

Interest

The cost of borrowing money or the payment received for deposit funds, calculated as a percentage of the principal.

Investment

The allocation of money into financial assets, real estate, or other ventures with the expectation of obtaining additional income or profit.

Interest Earned

The amount of money gained on an investment or savings account over time due to applied interest rates.