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:

Surgical Site Infection

An infection that occurs after surgery in the part of the body where the surgery took place, potentially causing complications.

Operative Suite

A specialized facility within a hospital where surgical procedures are performed, also known as an operating room or theatre.

Preoperative Education

A program or guidance provided to patients to prepare them mentally and physically before undergoing surgery.

Surgical Staff

Medical personnel involved in surgical operations, including surgeons, anesthesiologists, and nurses.