Jason Sells Stock with an Adjusted Basis of $66,000 to JJ

question 68

Multiple Choice

Jason sells stock with an adjusted basis of $66,000 to JJ Inc.,his 60% owned corporation,for its fair market value of $60,000.JJ Inc.sells the stock three years later for $67,000.JJ Inc.'s recognized gain or loss on the sale will be

• A)$0.
• B)($3,000).
• C)$1,000.
• D)$4,000.

---

Definitions:

Genetic Modification

The manipulation of an organism's genes using biotechnology, often to enhance or introduce specific traits not naturally occurring in the organism.

Herbicide-Resistant

Refers to plants that have developed the ability to survive applications of herbicides meant to kill them.

Fertilizer

A chemical or natural substance added to soil or land to increase its fertility and promote plant growth.

Cropland

Land that is used for or suitable for the cultivation of crops for agriculture.