Determine the Amount of the Capital Gain or Loss in Each

question 45

Multiple Choice

Determine the amount of the capital gain or loss in each of the following transactions and state whether the gain or loss is long-term or short-term.

• A)100 shares of Bilco stock bought for $8,000 on January 22 of year 3 and sold for $10,000 on January 22 of year 4.
• B)20 acres of investment land bought for $8,000 on January 31 of year 3 and sold for $7,000 on February 2 of year 4.
• C)150 shares of Data stock bought for $15,000 on April 1 of year 2 and sold for $17,000 on May 28 of year 4.

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Definitions:

Cytoplasmic Division

The process, also known as cytokinesis, during which the cytoplasm of a parental cell divides to form two daughter cells.

Nuclear Division

The process by which a nucleus divides, resulting in the segregation of the genome to two daughter nuclei. This occurs via mitosis or meiosis.

Proto-oncogenes

Normal genes that can become oncogenes if mutated or expressed at high levels, potentially leading to cancer.

Tumor Suppressor Genes

Genes that help regulate cell growth and division, and can prevent the development of tumors by repairing DNA, promoting cell death, or ensuring cells do not proliferate uncontrollably.