Ethel, Hannah, and Samuel, Unrelated Individuals, Own the Stock in Broadbill

question 142

Multiple Choice

Ethel, Hannah, and Samuel, unrelated individuals, own the stock in Broadbill Corporation (E & P of $700,000) as follows: Ethel, 300 shares? Hannah, 300 shares? and Samuel, 400 shares. Broadbill redeems 200 of Samuel's shares (basis of $175,000) for $250,000. If Samuel's stock is a capital asset and has been held for over three years, Samuel has:

• A) A long-term capital gain of $75,000.
• B) A short-term capital gain of $75,000.
• C) Ordinary income of $250,000.
• D) Ordinary income of $75,000.
• E) None of the above.

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Definitions:

FOXP2 Gene

A genetic element linked to the evolution of speech and language in humans, where alterations can result in disorders related to speech and language.

Neanderthals

An extinct species or subspecies of archaic humans who lived in Eurasia until approximately 40,000 years ago, known for their robust build and large brain capacity.

Neurophysiology

The study of the function and mechanisms of the nervous system, including how neurons communicate.

FOXP2 Gene

A gene that is linked to language and speech development in humans, also known for its role in the vocalization and communication in other species.