On May 18,of Last Year,Yuji Sold Unlisted Stock with a Cost

question 114

Multiple Choice

On May 18,of last year,Yuji sold unlisted stock with a cost of $12,000 for $30,000.Yuji collected $10,000 initially and is scheduled to receive $5,000 each year for four years starting this year plus an acceptable rate of interest.After receiving the first scheduled $5,000 payment,Yuji was unable to collect any further payments.After incurring legal fees of $500,Yuji recovered a portion of the stock valued at $13,000.Yuji's basis in the recovered stock is

• A)$6,500.
• B)$7,000.
• C)$12,500.
• D)$13,000.

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Definitions:

Opportunities

Options or possibilities for individuals or firms to engage in beneficial activities or investments.

Equity

Fairness or justice in the way people are treated or how resources and wealth are distributed.

Efficiency

A measure of how well resources are used to produce goods and services without waste.

Trade-Off

A comparison of costs and benefits of doing something.