Adam Purchased 1,000 Shares of Airco Inc

question 128

Multiple Choice

Adam purchased 1,000 shares of Airco Inc.common stock for $22,000 on February 3,2014.On April 1,2016,Adam received 100 new shares in a nontaxable stock dividend.As of April 1,the stock was trading at $25 per share.Adam sells the 100 new shares on June 15,2016 for $2,400.Due to the stock sale,Adam will recognize a

• A)$100 STCL.
• B)$2,400 STCG.
• C)$400 STCG.
• D)$400 LTCG.

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Definitions:

Mutually Assured Destruction

A military doctrine holding that full-scale use of nuclear weapons by opposing sides would result in the destruction of both the attacker and the defender.

Nuclear Missiles

Weapons of mass destruction powered by nuclear energy, capable of causing massive destruction and loss of life when detonated.

Rogue Nation

A term used to describe a country that acts in a way that is not in line with international norms or laws, often engaging in dangerous or unpredictable behavior.

Ideology

denotes a systematic body of concepts, especially about human life and culture, that guides an individual, social movement, institution, or large group.